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MM Group for Industry and International Trade (SAE) Cairo- Egypt
Consolidated Financial Statements For the Period 31 March 2020
With Limited Review Report
Auditors review report 3
Consolidated statement of financial position 4
Consolidated statement of income (Profit and loss) 5
Consolidated statement of comprehensive Income 6
Consolidated Statement of change in equity 7
Consolidated Statement of cash flows 8
Notes to the consolidated financial statements 9-24
Moore Egypt Public AccounLanLS amp Consultants Head Office 5 AI Ahram St Heliopolis Cairo Egypt 11757
MOORE Egypt
PO Box 329 Hel iopo lis Down Town Office 8(A) Ali EI Kassa r St Opera Squa re Down Town Cairo Egypt l1lll1 Alexandria Office 196 Port Said St Sporting Alexand ria Egypt 21321 wwwmoore -egyptcom
Limited Review Report
To Messrs Management of MM Group for Industry and International Trade (Egyptian Joint Stock Company)
Introduction
We have perfonned a limited review for the accompanying consolidated financial statements of MM Group for Industry and International Trade Company which comprise the financial position as of March 31 2020 and the related statements of income comprehensive income changes of shareholders equity and cash flows for the three months that ended and a summary of significant accounting policies and other explanatory notes Management is responsible for the preparation and fair presentation of these interim consolidated financial statements in accordance with Egyptian Accounting Standards our responsibility is to express a conclusion on these interim financial statements based on our limited review
Scope of Limited Review
We conducted our limited review in accordance with the Egyptian Standard on Review Engagements 2410 limited review of interim financial statement performed by the Independent Auditor of the entity A limited review of interim financial statements consists of making inquiries primarily of persons responsible for Financial and accounting matters in the company and applying analytical and other limited review procedures A limited review is substantially less in scope than an audit conducted in accordance with Egyptian Standards on Auditing and consequently does not enable as to obtain assurance that we would become aware of all significant matters that might be identified in an audit Accordingly we do not express an audit opinion on these interim financial statements
Conclusion
Except for the effects for the previous paragraph based our limited review nothing has come to our attention that causes us to believe that the accompanying interim Financial statements do not present Fairly in all material respects the Financial position of MM Group for Industry and Intemational Trade Company as at March 31 2020 and of Financial performance and its cash flows for the three months then ended in accordance with Egyptian accounting standards
Emphasis of Matter
Without considering the following as a qualification
the Company has prepared the consolidated financial statements based on the financial statements prepared by management of n Ebtikar for Financial Investments (SAE) Mediterranean industrial company and Tamweel for General Trade for the period ending March 312020 which is classified as an investment in associates
Subsequent events following the financial period that do not require an amendment to the financial statements the impact of the recent outbreak (Covid-19) virus on the global economy and the markets continues and its negative impact related to the developments of this event which can be achieved in the future in several ways The company has taken procedures to reduce the impact associated with the development of the event and to identify these effects see Note No (26) of the notes to the financial statements for the financial period ending 31 March 2020
~~~
Cairo 9 June 2020 ~J~ i)~~ c
~ ~j~~
~
bull - l trmiddotmo~AJIMl~ ~- ali~
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Financial Position Notes 3132020 31122019
Non-current assets EGP EGP
Fixed assets (4) 86440471 76496834
Investments property (5) 1 729214 1841501
Projects under construction (6) 1 368423 1230624
Investments in associates (7) 404055325 401 048237
Total non-current assets 493593433 480617196
Current assets
Inventory (8) 1 313570956 1 101305669
Receivables amp notes receivables (9) 637229013 507408742
Due from related parties (10-1 ) 3184050 4279957
Advances to suppliers 294097403 314570811
Debtors amp other debit balances (11 ) 191583225 204781 102
Investments at fair value through profit and loss (12) 49887412 50211 472
Cash on hand and at banks (13) 124372 089 149381124
Total current assets 2613924148 2331938877
Total assets 3107517 581 2812556073
Equity
Issued and paid up capital (14) 383625000 383625000
Legal reserve 45215631 45215631
General reserve 64462273 64462273
Gains arising from translating the financial statements 2107503
Retained earning 938137308 476806210
Profit for the period 1year 105921 669 459466852
Total equity of parent company 1 539469384 1429575966
Non-controlling interest 105001 856 104206372
Total equity 1644471240 1 533782338
Non-current liabilities
Deferred tax liability 667577 1165858
Total Non-current liabilities 667577 1 165858
Current liabilities
Provisions (15) 29418444 29516539
Credit Bank 393407855 280314215
Due to related parties (10-2) 110015968 116547206
Customers Advance payment 155060132 187884850
Suppliers amp notes payables (16) 612849427 535961 282
Creditors amp other credit balances (17) 66814287 48904115
Accrual income tax (18) 94812651 78479670
Total current liabilities 1462378764 1277 607 877
Total equity and liabilities 3107517581 281255amp 073
-The accompanying notes are an integral part of the consolidated financial statements - Auditors report attached
Chief F middot JSkk~ E
Khaled Gamal Mohamed A ~ Mahmoud Khaled HamcbtSftte111
I Officer
Page 4 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated- statement of income (profit and Loss) Notes 3132020 3132019
EGP EGP
Net sales (19) 2233087605 2896616975
Less
Cost of sales (20) (1 982271 285) (2 628954 186)
Gross profit 250816320 267662789
Less
Sales amp distribution expenses (21 ) (87167306) (73793010)
General amp administrative expenses (22) (6078663) (3891 705)
Depreciation of administrative assets (1 022942) (529796)
Total expenses (94268911) (78214511)
Net operating profit 156547409 189448278
(Less) 1Add
lossGain from subsidiaries and associated companies (7) (1 400484) 8802929
Takaful contribution for health insurance (4749966) (7268 111)
Income from investment property 2027831 1320000
Depreciation of investment property (112287) (114244)
(Loss)Gain from investments at fair value through profit and loss (2021 490) 1901 710
Capital loss (22206)
Finance expenses (11 991 655) (7097409)
Credit interest 804518 1510727
Provisions (15) (243454)
Provisions no longer required (15) 124953
Foreign currency exchange gain 1(loss) 687809 (3513956)
Net profit for the period before taxes 139894432 184746470
(Less) IAdd
Income tax
Deferred tax
(18) (33754343)
498281
(41353004)
(424911)
Net profit for the period after taxes 106638370 142968555
Distributed on follows
Owners of the parent company 105921 669 135344230
Non-controlling interest 716701 7624325
106638370 142968555
Earnings Per Share (EGPShare) (23) 014 022
-The accompanying notes are an integral part of the consolidated financial statements
Chairm~ Chief]SCial Officer Financial~~e~~k ~ __Ke~aIMohamed J NV ~ ~~yzjMahmoud Kh aled H arndY-Salerii
Page 5 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated statement of comprehensive Income
3132020 3132019 EGP EGP
Net profit for the period after taxes 106 638 370 142 968555
Add
Other comprehensive Income
Gains arising from translating the financial statements 2107503
Investments available for sale (net change at fair value) 30701
Total other comprehensive Income 108745873 142999256
Disturbed as follows
Owners of the parent company 108029172 135374931
Non-controlling interest 716701 7624325
Total other comprehensive Income 108745873 142999256
- The accompanying notes are an integral part of the consolidated financial statements
~~~Wl~e~ Osama Fath~~ ~crshy~r d Gamal Mohamed
Mahmoud
Page 6of24
MIVi ~roujJ for lIiuustly and II IltrnaUUIlal ( lade (vAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic Consolidated Statement of Change in Equity
Equity of the parent company Gains
3132019 Paid-up General
arising from translating
the financial Investments revaluation Retained Profit of the Total
Non-controlling
Capital Legal Reserve Reserve statements reserve earning period interest Total Equity EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Balance as of January 1 2019 306900000 32294029 64462273 (109950) 348764332 271245686 1023556370 113730348 1137286718
Transferred to retained earning 271245686 (271 245 686)
Control of subsidiaries adjustments 730652 730652 (19293672) (18563020)
Comprehensive Income for the period 30701 135344230 135374931 7624325 142999256
Balance as of 31 march 2019 306900000 32294029 64 462 273 (79249) 620740670 135344 230 1159661 953 102061 001 1261722954
3132020
Balance as of march 1 2020 383625000 45215631 64462273 476806210 459466852 1429575966 104206372 1 533782338
Transferred to retained earning 459466852 (459466852)
Retained earnings adjustment 1642417 1 642417 1642417
Control of subsidiaries adjustments 221 829 221829 78783 300612 2107503
Comprehensive Income for the period 105921 669 108029172 716701 108745873 2107503Balance as of 31 march 2020 383625000 45215631 64462273 938137308 105921669 1539469384 105001 856 1644 471240
- The accompanying notes are an integral part of the Consolidated financial statements
Financial Ma~ Chin Office~~~ ~~ O~ayKhaled Gamal Mohamed Mahmoud
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Cash Flows Notes
Cash flows from operating activities
Net profit before income tax
Adjustments to reconcile net profit to cash flows
From operating activities
Fixed assets depreciation (4)
Investment Property depreciation (5)
Gainloss from Investments in associated companies (7) Retained earnings adjustments Provisions no longer required (15) Provision (15)
Gains(Ioss) from investments at fair value through profit and (12)
loss
Finance expenses
Capital Gain
(Ioss)gain foreign currency exchange
Credit interest
3132020 EGP
139894432
5250951
112287
1400484 1642417 (124953)
2021490
11 991 655
22206
(687809) (804518)
3132019 EGP
184746470
2501 088
114244
(8802929)
243454
(1 901 710)
7097409
3513956 (1 510727)
Net operating income 160718642 186001255
Change in inventory (8) (212 265 287) (227 540 237)
Change in Receivables and notes receivables (9) (129820271) (166248332) Change in due from related parties (10middot1) 1 095907 702405
Change in Advance to suppliers 20473408 (27947820) Change in Debtors and other debit balances (11) 13197877 (24594693) Change in Suppliers and Notes payable (16) 76888 145 444165457
Change in Due to related parties (10-2) (6531238) (12544776) Change in Advance accounts Receivables (32824718) 29307216 Change in Creditors and other credit balances (17) 17910172 (13631 761) Cash flows (used in) 1provided by operating activities (91 157363) 187668714
Paid Income Tax
Used in provisions
Paid Debit Interest
(18) (17 421 362)
(11 991 655)
(11115702)
(537965)
(7097409)
Net Cash flow (used in)1 provided by operating activities (120570380) 168917638
Cash flows from investment activities
(Payments) for purchase of fixed assets and projects under
construction
(4) (6) (8465305) (3641 529)
(Payments) for associated company (7) (6589774) (17500000)
(Payments) for investment in subsidiaries(net after cash
balance) (2272 113) (18563020)
Proceeds from credit interest 804518 1510727
Foreign currency exchange 687809 (3513956)
Proceeds from Investments at fair value through profit and loss (1 697430) (441 750)
Net cash flows (used in) by investment activities (17 532 295) (42149528)
Cash flows from financing activities
Change in bank over draft 113093640 (59815728)
Net cash flows provided by(used in financing activities 113093640 (59815728)
Net change in cash and cash equivalents during the year (25009035) 66952382
Cash and cash equivalents at the beginning of the year 149381 124 98040434 Cash and cash equivalents at the end of the year (13) 124372089 164992816
Financial Manager
OsamaF~l _
O~~-(JPage8of24
Chairman
Khaled Gamal Mohamed Mahmoud
~~~L
MM Group for Industry and International Trade (5 rlorl 31
Notes to the consolidated financial statements
1 About The company
A Companys background
MM Group for Industry and International Trade (SAE) is established under the Law No159 of 1981 and its executive regulations and considering the provisions of law No 95 of 1992 and its executive regulations and has been reaistered in the commercial reaister under No609 10 of Ramadan city on January 3 1996
Based on a Extraordinary general assembly held on April 5 2016 the decree of the general authority for investment and free zones no 6382 year 2016 which decided to the company into shy
bull MM Group company for the industry and international ( The Splitter) bull MTI company for real estate investment (SAE) (The Spfitted)
And use the date of the of the company at book value on the Companys financial statements at December 31 2015 as a basis to assess the assets and liabilities of the company for the purpose of solit and it was registered in the comercial reaister on december 29 2016
6th - According to the as of 2017 that agree to make an Initial public offering of 30of the shares of MM Group for industry and international trade company (SAE) in the Egyptian stock market on april 11 2017
B Companys Purpose
Producing and assembling vehicles agricultural tractors and related equipment heavy and light means of transportation and performing engine overhauls (b) maintenance installation and repairs through spl3cii3lized service (c) trading of cars agricultural tractors and related equipment loaders all heavy and light means of transportation including required spare parts maintenance and other related activities
and cladding pipes which is by the company
producing the required production supplies to serve the Companys purposes
all goods and products authorized for import in accordance to the Law
utilizing Egyptian commercial agencies for trading in electronic devices related to remote sensing and providing Advance technical and technological trading of telecommunication devices and mobile phones and the maintenance and reoair there of through soecialized service centres
the sale and of real estate properties land and movable assets to serve the Companys purposes (except for areas mentioned in the Ministerial Decree No 12 of Law No 94 of 2005 as well as the Sinai Peninsula and Shalateen which requires a prior approval from GAFls chairman)
assembling and manufactUring split air conditioners and mobile in one of the new industrial areas
oVMrfiM all goods and products authorized for export in accordance to the Law
Selling all goods and products mentioned as a part of the companys purpose including HhiI agricultural fork lift and loader
Sale of mobile lines and mobile recharge cards
Sale of electrical and non-electrical household appliances
The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in Egypt or abroad The Company may also merge with purchase or such according to the Drovisions of the Law and its Executive
Page 9 of 24
MM Group for Industry and International Trade (SAE) ended March 2020
1 About The company (continued)
C Companys location
- The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo
D Companys Duration
the fiscal year for the company begins on the 1s1 of January and ends on December of each year
- The duration is twenty-five years from the date of in the commercial
E Approval of the financial statements
- The consolidated financial statements of the Company for the period ended 31 March 2020 were authorized for issuance in accordance with a decree ofthe board of directors held on June 9 2020
2 Basis for preparation of financial statements
A Basis of consolidation
-The consolidated financial statements are prepared by consolidating the financial statements of the Holding Company and its subsidiaries through collecting similar items of assets liabilities equity revenues and expenses
-The investment cost borne the holding company in its subsidiaries was eliminated along with the holding companys share in the equity of each subsidiary
- Unrealized intercompany transactions are eliminated
- Non-controllable interest in net equity and in net profit of subsidiaries controlled by the company are included in the equity in the consolidated financial statements under an clause non-controlling interests and are calculated as eaual to their share in the carrying value of the net assets of the
-The acquisition cost was distributed as follows-
The fair value of assets and liabilities owned at the date of acquisition and within the limits of the share of the parent company that was acquired on that date
- The additional acquisition cost over the share of the parent companys share in the capital of the subsidiary companies is recognized as goodwill
Scope of consolidated financial statements
The consolidated financial statements include the companies in which the company contributes more than 50 of its capital and it has control over it and companies with less than 50 contribution The company has the ability to control the companys decisions The following are the companies listed in the consolidated financial statements
Investment
MM for Export amp Import 99
Qanawat for trading and distribution company 7048
Mediterranean industrial company 9910
B Commitment to accounting standards and laws
These financial statements were in accordance with CUVULIGII Accounting Standards and prevailing
laws and regulations
C Disclosure and presentation currency
The financial statements are presented in Pound which is the Companys functional currency
Page 10 of 24
MM Group for Industry and International period ended Consolidated financial statements for
2 Basis for preparation of financial statements (continued)
D Use of estimates and
The preparation of the consolidated financial statements are in-accordance with the Egyptian Accounting Standards
requiring to make estimates and that affect assets and liabilities revenues and expenses
during the financial period
Actual results may differ from these estimates The estimates and assumptions are reviewed on-going basis and
the effects ofthe modification of the accounting estimates in the period in which estimates are revised
and estimates are mainly used in the application of pOlicies with significant impact on
balances included in the financial statements and which are disclosed under the following notes
Fixed assets
Investment Property
Financial instruments
Provisions
3 Significant accounting policies
The Company applies the following policies consistently and it is consistent with that applied in aU the financial years disclosed in these consolidated financial statements
3middot1 Foreign currencies translation
Transactions in foreign currencies are initially recorded using the exchanqe rate nrolinn on the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are retranslated the rates riiinn at the balance sheet date All differences are recoQnized in the statement of income
Nonmonetary items that are measured at historical cost in foreign currencies are translated using the rates prevailing at the date of the initial
3middot2 Fixed assets and its deprecation
a The first recognition and initial measurement
Fixed assets are stated at the historical cost after deducting accumulated rionrpltiM and accumulated impairment losses
b Subsequent Cost
Such cost includes the cost of replaCing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied aU other repair and maintenance costs are recoQnized in the statement of profit or loss as incurred
c Depreciation
Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The amount is carried on the income statement according to the method the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates
Asset Depreciation
Rate
Building facilities and decoration 5
Computers 50
Other assets 25
11 of 24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
Auditors review report 3
Consolidated statement of financial position 4
Consolidated statement of income (Profit and loss) 5
Consolidated statement of comprehensive Income 6
Consolidated Statement of change in equity 7
Consolidated Statement of cash flows 8
Notes to the consolidated financial statements 9-24
Moore Egypt Public AccounLanLS amp Consultants Head Office 5 AI Ahram St Heliopolis Cairo Egypt 11757
MOORE Egypt
PO Box 329 Hel iopo lis Down Town Office 8(A) Ali EI Kassa r St Opera Squa re Down Town Cairo Egypt l1lll1 Alexandria Office 196 Port Said St Sporting Alexand ria Egypt 21321 wwwmoore -egyptcom
Limited Review Report
To Messrs Management of MM Group for Industry and International Trade (Egyptian Joint Stock Company)
Introduction
We have perfonned a limited review for the accompanying consolidated financial statements of MM Group for Industry and International Trade Company which comprise the financial position as of March 31 2020 and the related statements of income comprehensive income changes of shareholders equity and cash flows for the three months that ended and a summary of significant accounting policies and other explanatory notes Management is responsible for the preparation and fair presentation of these interim consolidated financial statements in accordance with Egyptian Accounting Standards our responsibility is to express a conclusion on these interim financial statements based on our limited review
Scope of Limited Review
We conducted our limited review in accordance with the Egyptian Standard on Review Engagements 2410 limited review of interim financial statement performed by the Independent Auditor of the entity A limited review of interim financial statements consists of making inquiries primarily of persons responsible for Financial and accounting matters in the company and applying analytical and other limited review procedures A limited review is substantially less in scope than an audit conducted in accordance with Egyptian Standards on Auditing and consequently does not enable as to obtain assurance that we would become aware of all significant matters that might be identified in an audit Accordingly we do not express an audit opinion on these interim financial statements
Conclusion
Except for the effects for the previous paragraph based our limited review nothing has come to our attention that causes us to believe that the accompanying interim Financial statements do not present Fairly in all material respects the Financial position of MM Group for Industry and Intemational Trade Company as at March 31 2020 and of Financial performance and its cash flows for the three months then ended in accordance with Egyptian accounting standards
Emphasis of Matter
Without considering the following as a qualification
the Company has prepared the consolidated financial statements based on the financial statements prepared by management of n Ebtikar for Financial Investments (SAE) Mediterranean industrial company and Tamweel for General Trade for the period ending March 312020 which is classified as an investment in associates
Subsequent events following the financial period that do not require an amendment to the financial statements the impact of the recent outbreak (Covid-19) virus on the global economy and the markets continues and its negative impact related to the developments of this event which can be achieved in the future in several ways The company has taken procedures to reduce the impact associated with the development of the event and to identify these effects see Note No (26) of the notes to the financial statements for the financial period ending 31 March 2020
~~~
Cairo 9 June 2020 ~J~ i)~~ c
~ ~j~~
~
bull - l trmiddotmo~AJIMl~ ~- ali~
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Financial Position Notes 3132020 31122019
Non-current assets EGP EGP
Fixed assets (4) 86440471 76496834
Investments property (5) 1 729214 1841501
Projects under construction (6) 1 368423 1230624
Investments in associates (7) 404055325 401 048237
Total non-current assets 493593433 480617196
Current assets
Inventory (8) 1 313570956 1 101305669
Receivables amp notes receivables (9) 637229013 507408742
Due from related parties (10-1 ) 3184050 4279957
Advances to suppliers 294097403 314570811
Debtors amp other debit balances (11 ) 191583225 204781 102
Investments at fair value through profit and loss (12) 49887412 50211 472
Cash on hand and at banks (13) 124372 089 149381124
Total current assets 2613924148 2331938877
Total assets 3107517 581 2812556073
Equity
Issued and paid up capital (14) 383625000 383625000
Legal reserve 45215631 45215631
General reserve 64462273 64462273
Gains arising from translating the financial statements 2107503
Retained earning 938137308 476806210
Profit for the period 1year 105921 669 459466852
Total equity of parent company 1 539469384 1429575966
Non-controlling interest 105001 856 104206372
Total equity 1644471240 1 533782338
Non-current liabilities
Deferred tax liability 667577 1165858
Total Non-current liabilities 667577 1 165858
Current liabilities
Provisions (15) 29418444 29516539
Credit Bank 393407855 280314215
Due to related parties (10-2) 110015968 116547206
Customers Advance payment 155060132 187884850
Suppliers amp notes payables (16) 612849427 535961 282
Creditors amp other credit balances (17) 66814287 48904115
Accrual income tax (18) 94812651 78479670
Total current liabilities 1462378764 1277 607 877
Total equity and liabilities 3107517581 281255amp 073
-The accompanying notes are an integral part of the consolidated financial statements - Auditors report attached
Chief F middot JSkk~ E
Khaled Gamal Mohamed A ~ Mahmoud Khaled HamcbtSftte111
I Officer
Page 4 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated- statement of income (profit and Loss) Notes 3132020 3132019
EGP EGP
Net sales (19) 2233087605 2896616975
Less
Cost of sales (20) (1 982271 285) (2 628954 186)
Gross profit 250816320 267662789
Less
Sales amp distribution expenses (21 ) (87167306) (73793010)
General amp administrative expenses (22) (6078663) (3891 705)
Depreciation of administrative assets (1 022942) (529796)
Total expenses (94268911) (78214511)
Net operating profit 156547409 189448278
(Less) 1Add
lossGain from subsidiaries and associated companies (7) (1 400484) 8802929
Takaful contribution for health insurance (4749966) (7268 111)
Income from investment property 2027831 1320000
Depreciation of investment property (112287) (114244)
(Loss)Gain from investments at fair value through profit and loss (2021 490) 1901 710
Capital loss (22206)
Finance expenses (11 991 655) (7097409)
Credit interest 804518 1510727
Provisions (15) (243454)
Provisions no longer required (15) 124953
Foreign currency exchange gain 1(loss) 687809 (3513956)
Net profit for the period before taxes 139894432 184746470
(Less) IAdd
Income tax
Deferred tax
(18) (33754343)
498281
(41353004)
(424911)
Net profit for the period after taxes 106638370 142968555
Distributed on follows
Owners of the parent company 105921 669 135344230
Non-controlling interest 716701 7624325
106638370 142968555
Earnings Per Share (EGPShare) (23) 014 022
-The accompanying notes are an integral part of the consolidated financial statements
Chairm~ Chief]SCial Officer Financial~~e~~k ~ __Ke~aIMohamed J NV ~ ~~yzjMahmoud Kh aled H arndY-Salerii
Page 5 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated statement of comprehensive Income
3132020 3132019 EGP EGP
Net profit for the period after taxes 106 638 370 142 968555
Add
Other comprehensive Income
Gains arising from translating the financial statements 2107503
Investments available for sale (net change at fair value) 30701
Total other comprehensive Income 108745873 142999256
Disturbed as follows
Owners of the parent company 108029172 135374931
Non-controlling interest 716701 7624325
Total other comprehensive Income 108745873 142999256
- The accompanying notes are an integral part of the consolidated financial statements
~~~Wl~e~ Osama Fath~~ ~crshy~r d Gamal Mohamed
Mahmoud
Page 6of24
MIVi ~roujJ for lIiuustly and II IltrnaUUIlal ( lade (vAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic Consolidated Statement of Change in Equity
Equity of the parent company Gains
3132019 Paid-up General
arising from translating
the financial Investments revaluation Retained Profit of the Total
Non-controlling
Capital Legal Reserve Reserve statements reserve earning period interest Total Equity EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Balance as of January 1 2019 306900000 32294029 64462273 (109950) 348764332 271245686 1023556370 113730348 1137286718
Transferred to retained earning 271245686 (271 245 686)
Control of subsidiaries adjustments 730652 730652 (19293672) (18563020)
Comprehensive Income for the period 30701 135344230 135374931 7624325 142999256
Balance as of 31 march 2019 306900000 32294029 64 462 273 (79249) 620740670 135344 230 1159661 953 102061 001 1261722954
3132020
Balance as of march 1 2020 383625000 45215631 64462273 476806210 459466852 1429575966 104206372 1 533782338
Transferred to retained earning 459466852 (459466852)
Retained earnings adjustment 1642417 1 642417 1642417
Control of subsidiaries adjustments 221 829 221829 78783 300612 2107503
Comprehensive Income for the period 105921 669 108029172 716701 108745873 2107503Balance as of 31 march 2020 383625000 45215631 64462273 938137308 105921669 1539469384 105001 856 1644 471240
- The accompanying notes are an integral part of the Consolidated financial statements
Financial Ma~ Chin Office~~~ ~~ O~ayKhaled Gamal Mohamed Mahmoud
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Cash Flows Notes
Cash flows from operating activities
Net profit before income tax
Adjustments to reconcile net profit to cash flows
From operating activities
Fixed assets depreciation (4)
Investment Property depreciation (5)
Gainloss from Investments in associated companies (7) Retained earnings adjustments Provisions no longer required (15) Provision (15)
Gains(Ioss) from investments at fair value through profit and (12)
loss
Finance expenses
Capital Gain
(Ioss)gain foreign currency exchange
Credit interest
3132020 EGP
139894432
5250951
112287
1400484 1642417 (124953)
2021490
11 991 655
22206
(687809) (804518)
3132019 EGP
184746470
2501 088
114244
(8802929)
243454
(1 901 710)
7097409
3513956 (1 510727)
Net operating income 160718642 186001255
Change in inventory (8) (212 265 287) (227 540 237)
Change in Receivables and notes receivables (9) (129820271) (166248332) Change in due from related parties (10middot1) 1 095907 702405
Change in Advance to suppliers 20473408 (27947820) Change in Debtors and other debit balances (11) 13197877 (24594693) Change in Suppliers and Notes payable (16) 76888 145 444165457
Change in Due to related parties (10-2) (6531238) (12544776) Change in Advance accounts Receivables (32824718) 29307216 Change in Creditors and other credit balances (17) 17910172 (13631 761) Cash flows (used in) 1provided by operating activities (91 157363) 187668714
Paid Income Tax
Used in provisions
Paid Debit Interest
(18) (17 421 362)
(11 991 655)
(11115702)
(537965)
(7097409)
Net Cash flow (used in)1 provided by operating activities (120570380) 168917638
Cash flows from investment activities
(Payments) for purchase of fixed assets and projects under
construction
(4) (6) (8465305) (3641 529)
(Payments) for associated company (7) (6589774) (17500000)
(Payments) for investment in subsidiaries(net after cash
balance) (2272 113) (18563020)
Proceeds from credit interest 804518 1510727
Foreign currency exchange 687809 (3513956)
Proceeds from Investments at fair value through profit and loss (1 697430) (441 750)
Net cash flows (used in) by investment activities (17 532 295) (42149528)
Cash flows from financing activities
Change in bank over draft 113093640 (59815728)
Net cash flows provided by(used in financing activities 113093640 (59815728)
Net change in cash and cash equivalents during the year (25009035) 66952382
Cash and cash equivalents at the beginning of the year 149381 124 98040434 Cash and cash equivalents at the end of the year (13) 124372089 164992816
Financial Manager
OsamaF~l _
O~~-(JPage8of24
Chairman
Khaled Gamal Mohamed Mahmoud
~~~L
MM Group for Industry and International Trade (5 rlorl 31
Notes to the consolidated financial statements
1 About The company
A Companys background
MM Group for Industry and International Trade (SAE) is established under the Law No159 of 1981 and its executive regulations and considering the provisions of law No 95 of 1992 and its executive regulations and has been reaistered in the commercial reaister under No609 10 of Ramadan city on January 3 1996
Based on a Extraordinary general assembly held on April 5 2016 the decree of the general authority for investment and free zones no 6382 year 2016 which decided to the company into shy
bull MM Group company for the industry and international ( The Splitter) bull MTI company for real estate investment (SAE) (The Spfitted)
And use the date of the of the company at book value on the Companys financial statements at December 31 2015 as a basis to assess the assets and liabilities of the company for the purpose of solit and it was registered in the comercial reaister on december 29 2016
6th - According to the as of 2017 that agree to make an Initial public offering of 30of the shares of MM Group for industry and international trade company (SAE) in the Egyptian stock market on april 11 2017
B Companys Purpose
Producing and assembling vehicles agricultural tractors and related equipment heavy and light means of transportation and performing engine overhauls (b) maintenance installation and repairs through spl3cii3lized service (c) trading of cars agricultural tractors and related equipment loaders all heavy and light means of transportation including required spare parts maintenance and other related activities
and cladding pipes which is by the company
producing the required production supplies to serve the Companys purposes
all goods and products authorized for import in accordance to the Law
utilizing Egyptian commercial agencies for trading in electronic devices related to remote sensing and providing Advance technical and technological trading of telecommunication devices and mobile phones and the maintenance and reoair there of through soecialized service centres
the sale and of real estate properties land and movable assets to serve the Companys purposes (except for areas mentioned in the Ministerial Decree No 12 of Law No 94 of 2005 as well as the Sinai Peninsula and Shalateen which requires a prior approval from GAFls chairman)
assembling and manufactUring split air conditioners and mobile in one of the new industrial areas
oVMrfiM all goods and products authorized for export in accordance to the Law
Selling all goods and products mentioned as a part of the companys purpose including HhiI agricultural fork lift and loader
Sale of mobile lines and mobile recharge cards
Sale of electrical and non-electrical household appliances
The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in Egypt or abroad The Company may also merge with purchase or such according to the Drovisions of the Law and its Executive
Page 9 of 24
MM Group for Industry and International Trade (SAE) ended March 2020
1 About The company (continued)
C Companys location
- The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo
D Companys Duration
the fiscal year for the company begins on the 1s1 of January and ends on December of each year
- The duration is twenty-five years from the date of in the commercial
E Approval of the financial statements
- The consolidated financial statements of the Company for the period ended 31 March 2020 were authorized for issuance in accordance with a decree ofthe board of directors held on June 9 2020
2 Basis for preparation of financial statements
A Basis of consolidation
-The consolidated financial statements are prepared by consolidating the financial statements of the Holding Company and its subsidiaries through collecting similar items of assets liabilities equity revenues and expenses
-The investment cost borne the holding company in its subsidiaries was eliminated along with the holding companys share in the equity of each subsidiary
- Unrealized intercompany transactions are eliminated
- Non-controllable interest in net equity and in net profit of subsidiaries controlled by the company are included in the equity in the consolidated financial statements under an clause non-controlling interests and are calculated as eaual to their share in the carrying value of the net assets of the
-The acquisition cost was distributed as follows-
The fair value of assets and liabilities owned at the date of acquisition and within the limits of the share of the parent company that was acquired on that date
- The additional acquisition cost over the share of the parent companys share in the capital of the subsidiary companies is recognized as goodwill
Scope of consolidated financial statements
The consolidated financial statements include the companies in which the company contributes more than 50 of its capital and it has control over it and companies with less than 50 contribution The company has the ability to control the companys decisions The following are the companies listed in the consolidated financial statements
Investment
MM for Export amp Import 99
Qanawat for trading and distribution company 7048
Mediterranean industrial company 9910
B Commitment to accounting standards and laws
These financial statements were in accordance with CUVULIGII Accounting Standards and prevailing
laws and regulations
C Disclosure and presentation currency
The financial statements are presented in Pound which is the Companys functional currency
Page 10 of 24
MM Group for Industry and International period ended Consolidated financial statements for
2 Basis for preparation of financial statements (continued)
D Use of estimates and
The preparation of the consolidated financial statements are in-accordance with the Egyptian Accounting Standards
requiring to make estimates and that affect assets and liabilities revenues and expenses
during the financial period
Actual results may differ from these estimates The estimates and assumptions are reviewed on-going basis and
the effects ofthe modification of the accounting estimates in the period in which estimates are revised
and estimates are mainly used in the application of pOlicies with significant impact on
balances included in the financial statements and which are disclosed under the following notes
Fixed assets
Investment Property
Financial instruments
Provisions
3 Significant accounting policies
The Company applies the following policies consistently and it is consistent with that applied in aU the financial years disclosed in these consolidated financial statements
3middot1 Foreign currencies translation
Transactions in foreign currencies are initially recorded using the exchanqe rate nrolinn on the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are retranslated the rates riiinn at the balance sheet date All differences are recoQnized in the statement of income
Nonmonetary items that are measured at historical cost in foreign currencies are translated using the rates prevailing at the date of the initial
3middot2 Fixed assets and its deprecation
a The first recognition and initial measurement
Fixed assets are stated at the historical cost after deducting accumulated rionrpltiM and accumulated impairment losses
b Subsequent Cost
Such cost includes the cost of replaCing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied aU other repair and maintenance costs are recoQnized in the statement of profit or loss as incurred
c Depreciation
Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The amount is carried on the income statement according to the method the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates
Asset Depreciation
Rate
Building facilities and decoration 5
Computers 50
Other assets 25
11 of 24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
Moore Egypt Public AccounLanLS amp Consultants Head Office 5 AI Ahram St Heliopolis Cairo Egypt 11757
MOORE Egypt
PO Box 329 Hel iopo lis Down Town Office 8(A) Ali EI Kassa r St Opera Squa re Down Town Cairo Egypt l1lll1 Alexandria Office 196 Port Said St Sporting Alexand ria Egypt 21321 wwwmoore -egyptcom
Limited Review Report
To Messrs Management of MM Group for Industry and International Trade (Egyptian Joint Stock Company)
Introduction
We have perfonned a limited review for the accompanying consolidated financial statements of MM Group for Industry and International Trade Company which comprise the financial position as of March 31 2020 and the related statements of income comprehensive income changes of shareholders equity and cash flows for the three months that ended and a summary of significant accounting policies and other explanatory notes Management is responsible for the preparation and fair presentation of these interim consolidated financial statements in accordance with Egyptian Accounting Standards our responsibility is to express a conclusion on these interim financial statements based on our limited review
Scope of Limited Review
We conducted our limited review in accordance with the Egyptian Standard on Review Engagements 2410 limited review of interim financial statement performed by the Independent Auditor of the entity A limited review of interim financial statements consists of making inquiries primarily of persons responsible for Financial and accounting matters in the company and applying analytical and other limited review procedures A limited review is substantially less in scope than an audit conducted in accordance with Egyptian Standards on Auditing and consequently does not enable as to obtain assurance that we would become aware of all significant matters that might be identified in an audit Accordingly we do not express an audit opinion on these interim financial statements
Conclusion
Except for the effects for the previous paragraph based our limited review nothing has come to our attention that causes us to believe that the accompanying interim Financial statements do not present Fairly in all material respects the Financial position of MM Group for Industry and Intemational Trade Company as at March 31 2020 and of Financial performance and its cash flows for the three months then ended in accordance with Egyptian accounting standards
Emphasis of Matter
Without considering the following as a qualification
the Company has prepared the consolidated financial statements based on the financial statements prepared by management of n Ebtikar for Financial Investments (SAE) Mediterranean industrial company and Tamweel for General Trade for the period ending March 312020 which is classified as an investment in associates
Subsequent events following the financial period that do not require an amendment to the financial statements the impact of the recent outbreak (Covid-19) virus on the global economy and the markets continues and its negative impact related to the developments of this event which can be achieved in the future in several ways The company has taken procedures to reduce the impact associated with the development of the event and to identify these effects see Note No (26) of the notes to the financial statements for the financial period ending 31 March 2020
~~~
Cairo 9 June 2020 ~J~ i)~~ c
~ ~j~~
~
bull - l trmiddotmo~AJIMl~ ~- ali~
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Financial Position Notes 3132020 31122019
Non-current assets EGP EGP
Fixed assets (4) 86440471 76496834
Investments property (5) 1 729214 1841501
Projects under construction (6) 1 368423 1230624
Investments in associates (7) 404055325 401 048237
Total non-current assets 493593433 480617196
Current assets
Inventory (8) 1 313570956 1 101305669
Receivables amp notes receivables (9) 637229013 507408742
Due from related parties (10-1 ) 3184050 4279957
Advances to suppliers 294097403 314570811
Debtors amp other debit balances (11 ) 191583225 204781 102
Investments at fair value through profit and loss (12) 49887412 50211 472
Cash on hand and at banks (13) 124372 089 149381124
Total current assets 2613924148 2331938877
Total assets 3107517 581 2812556073
Equity
Issued and paid up capital (14) 383625000 383625000
Legal reserve 45215631 45215631
General reserve 64462273 64462273
Gains arising from translating the financial statements 2107503
Retained earning 938137308 476806210
Profit for the period 1year 105921 669 459466852
Total equity of parent company 1 539469384 1429575966
Non-controlling interest 105001 856 104206372
Total equity 1644471240 1 533782338
Non-current liabilities
Deferred tax liability 667577 1165858
Total Non-current liabilities 667577 1 165858
Current liabilities
Provisions (15) 29418444 29516539
Credit Bank 393407855 280314215
Due to related parties (10-2) 110015968 116547206
Customers Advance payment 155060132 187884850
Suppliers amp notes payables (16) 612849427 535961 282
Creditors amp other credit balances (17) 66814287 48904115
Accrual income tax (18) 94812651 78479670
Total current liabilities 1462378764 1277 607 877
Total equity and liabilities 3107517581 281255amp 073
-The accompanying notes are an integral part of the consolidated financial statements - Auditors report attached
Chief F middot JSkk~ E
Khaled Gamal Mohamed A ~ Mahmoud Khaled HamcbtSftte111
I Officer
Page 4 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated- statement of income (profit and Loss) Notes 3132020 3132019
EGP EGP
Net sales (19) 2233087605 2896616975
Less
Cost of sales (20) (1 982271 285) (2 628954 186)
Gross profit 250816320 267662789
Less
Sales amp distribution expenses (21 ) (87167306) (73793010)
General amp administrative expenses (22) (6078663) (3891 705)
Depreciation of administrative assets (1 022942) (529796)
Total expenses (94268911) (78214511)
Net operating profit 156547409 189448278
(Less) 1Add
lossGain from subsidiaries and associated companies (7) (1 400484) 8802929
Takaful contribution for health insurance (4749966) (7268 111)
Income from investment property 2027831 1320000
Depreciation of investment property (112287) (114244)
(Loss)Gain from investments at fair value through profit and loss (2021 490) 1901 710
Capital loss (22206)
Finance expenses (11 991 655) (7097409)
Credit interest 804518 1510727
Provisions (15) (243454)
Provisions no longer required (15) 124953
Foreign currency exchange gain 1(loss) 687809 (3513956)
Net profit for the period before taxes 139894432 184746470
(Less) IAdd
Income tax
Deferred tax
(18) (33754343)
498281
(41353004)
(424911)
Net profit for the period after taxes 106638370 142968555
Distributed on follows
Owners of the parent company 105921 669 135344230
Non-controlling interest 716701 7624325
106638370 142968555
Earnings Per Share (EGPShare) (23) 014 022
-The accompanying notes are an integral part of the consolidated financial statements
Chairm~ Chief]SCial Officer Financial~~e~~k ~ __Ke~aIMohamed J NV ~ ~~yzjMahmoud Kh aled H arndY-Salerii
Page 5 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated statement of comprehensive Income
3132020 3132019 EGP EGP
Net profit for the period after taxes 106 638 370 142 968555
Add
Other comprehensive Income
Gains arising from translating the financial statements 2107503
Investments available for sale (net change at fair value) 30701
Total other comprehensive Income 108745873 142999256
Disturbed as follows
Owners of the parent company 108029172 135374931
Non-controlling interest 716701 7624325
Total other comprehensive Income 108745873 142999256
- The accompanying notes are an integral part of the consolidated financial statements
~~~Wl~e~ Osama Fath~~ ~crshy~r d Gamal Mohamed
Mahmoud
Page 6of24
MIVi ~roujJ for lIiuustly and II IltrnaUUIlal ( lade (vAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic Consolidated Statement of Change in Equity
Equity of the parent company Gains
3132019 Paid-up General
arising from translating
the financial Investments revaluation Retained Profit of the Total
Non-controlling
Capital Legal Reserve Reserve statements reserve earning period interest Total Equity EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Balance as of January 1 2019 306900000 32294029 64462273 (109950) 348764332 271245686 1023556370 113730348 1137286718
Transferred to retained earning 271245686 (271 245 686)
Control of subsidiaries adjustments 730652 730652 (19293672) (18563020)
Comprehensive Income for the period 30701 135344230 135374931 7624325 142999256
Balance as of 31 march 2019 306900000 32294029 64 462 273 (79249) 620740670 135344 230 1159661 953 102061 001 1261722954
3132020
Balance as of march 1 2020 383625000 45215631 64462273 476806210 459466852 1429575966 104206372 1 533782338
Transferred to retained earning 459466852 (459466852)
Retained earnings adjustment 1642417 1 642417 1642417
Control of subsidiaries adjustments 221 829 221829 78783 300612 2107503
Comprehensive Income for the period 105921 669 108029172 716701 108745873 2107503Balance as of 31 march 2020 383625000 45215631 64462273 938137308 105921669 1539469384 105001 856 1644 471240
- The accompanying notes are an integral part of the Consolidated financial statements
Financial Ma~ Chin Office~~~ ~~ O~ayKhaled Gamal Mohamed Mahmoud
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Cash Flows Notes
Cash flows from operating activities
Net profit before income tax
Adjustments to reconcile net profit to cash flows
From operating activities
Fixed assets depreciation (4)
Investment Property depreciation (5)
Gainloss from Investments in associated companies (7) Retained earnings adjustments Provisions no longer required (15) Provision (15)
Gains(Ioss) from investments at fair value through profit and (12)
loss
Finance expenses
Capital Gain
(Ioss)gain foreign currency exchange
Credit interest
3132020 EGP
139894432
5250951
112287
1400484 1642417 (124953)
2021490
11 991 655
22206
(687809) (804518)
3132019 EGP
184746470
2501 088
114244
(8802929)
243454
(1 901 710)
7097409
3513956 (1 510727)
Net operating income 160718642 186001255
Change in inventory (8) (212 265 287) (227 540 237)
Change in Receivables and notes receivables (9) (129820271) (166248332) Change in due from related parties (10middot1) 1 095907 702405
Change in Advance to suppliers 20473408 (27947820) Change in Debtors and other debit balances (11) 13197877 (24594693) Change in Suppliers and Notes payable (16) 76888 145 444165457
Change in Due to related parties (10-2) (6531238) (12544776) Change in Advance accounts Receivables (32824718) 29307216 Change in Creditors and other credit balances (17) 17910172 (13631 761) Cash flows (used in) 1provided by operating activities (91 157363) 187668714
Paid Income Tax
Used in provisions
Paid Debit Interest
(18) (17 421 362)
(11 991 655)
(11115702)
(537965)
(7097409)
Net Cash flow (used in)1 provided by operating activities (120570380) 168917638
Cash flows from investment activities
(Payments) for purchase of fixed assets and projects under
construction
(4) (6) (8465305) (3641 529)
(Payments) for associated company (7) (6589774) (17500000)
(Payments) for investment in subsidiaries(net after cash
balance) (2272 113) (18563020)
Proceeds from credit interest 804518 1510727
Foreign currency exchange 687809 (3513956)
Proceeds from Investments at fair value through profit and loss (1 697430) (441 750)
Net cash flows (used in) by investment activities (17 532 295) (42149528)
Cash flows from financing activities
Change in bank over draft 113093640 (59815728)
Net cash flows provided by(used in financing activities 113093640 (59815728)
Net change in cash and cash equivalents during the year (25009035) 66952382
Cash and cash equivalents at the beginning of the year 149381 124 98040434 Cash and cash equivalents at the end of the year (13) 124372089 164992816
Financial Manager
OsamaF~l _
O~~-(JPage8of24
Chairman
Khaled Gamal Mohamed Mahmoud
~~~L
MM Group for Industry and International Trade (5 rlorl 31
Notes to the consolidated financial statements
1 About The company
A Companys background
MM Group for Industry and International Trade (SAE) is established under the Law No159 of 1981 and its executive regulations and considering the provisions of law No 95 of 1992 and its executive regulations and has been reaistered in the commercial reaister under No609 10 of Ramadan city on January 3 1996
Based on a Extraordinary general assembly held on April 5 2016 the decree of the general authority for investment and free zones no 6382 year 2016 which decided to the company into shy
bull MM Group company for the industry and international ( The Splitter) bull MTI company for real estate investment (SAE) (The Spfitted)
And use the date of the of the company at book value on the Companys financial statements at December 31 2015 as a basis to assess the assets and liabilities of the company for the purpose of solit and it was registered in the comercial reaister on december 29 2016
6th - According to the as of 2017 that agree to make an Initial public offering of 30of the shares of MM Group for industry and international trade company (SAE) in the Egyptian stock market on april 11 2017
B Companys Purpose
Producing and assembling vehicles agricultural tractors and related equipment heavy and light means of transportation and performing engine overhauls (b) maintenance installation and repairs through spl3cii3lized service (c) trading of cars agricultural tractors and related equipment loaders all heavy and light means of transportation including required spare parts maintenance and other related activities
and cladding pipes which is by the company
producing the required production supplies to serve the Companys purposes
all goods and products authorized for import in accordance to the Law
utilizing Egyptian commercial agencies for trading in electronic devices related to remote sensing and providing Advance technical and technological trading of telecommunication devices and mobile phones and the maintenance and reoair there of through soecialized service centres
the sale and of real estate properties land and movable assets to serve the Companys purposes (except for areas mentioned in the Ministerial Decree No 12 of Law No 94 of 2005 as well as the Sinai Peninsula and Shalateen which requires a prior approval from GAFls chairman)
assembling and manufactUring split air conditioners and mobile in one of the new industrial areas
oVMrfiM all goods and products authorized for export in accordance to the Law
Selling all goods and products mentioned as a part of the companys purpose including HhiI agricultural fork lift and loader
Sale of mobile lines and mobile recharge cards
Sale of electrical and non-electrical household appliances
The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in Egypt or abroad The Company may also merge with purchase or such according to the Drovisions of the Law and its Executive
Page 9 of 24
MM Group for Industry and International Trade (SAE) ended March 2020
1 About The company (continued)
C Companys location
- The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo
D Companys Duration
the fiscal year for the company begins on the 1s1 of January and ends on December of each year
- The duration is twenty-five years from the date of in the commercial
E Approval of the financial statements
- The consolidated financial statements of the Company for the period ended 31 March 2020 were authorized for issuance in accordance with a decree ofthe board of directors held on June 9 2020
2 Basis for preparation of financial statements
A Basis of consolidation
-The consolidated financial statements are prepared by consolidating the financial statements of the Holding Company and its subsidiaries through collecting similar items of assets liabilities equity revenues and expenses
-The investment cost borne the holding company in its subsidiaries was eliminated along with the holding companys share in the equity of each subsidiary
- Unrealized intercompany transactions are eliminated
- Non-controllable interest in net equity and in net profit of subsidiaries controlled by the company are included in the equity in the consolidated financial statements under an clause non-controlling interests and are calculated as eaual to their share in the carrying value of the net assets of the
-The acquisition cost was distributed as follows-
The fair value of assets and liabilities owned at the date of acquisition and within the limits of the share of the parent company that was acquired on that date
- The additional acquisition cost over the share of the parent companys share in the capital of the subsidiary companies is recognized as goodwill
Scope of consolidated financial statements
The consolidated financial statements include the companies in which the company contributes more than 50 of its capital and it has control over it and companies with less than 50 contribution The company has the ability to control the companys decisions The following are the companies listed in the consolidated financial statements
Investment
MM for Export amp Import 99
Qanawat for trading and distribution company 7048
Mediterranean industrial company 9910
B Commitment to accounting standards and laws
These financial statements were in accordance with CUVULIGII Accounting Standards and prevailing
laws and regulations
C Disclosure and presentation currency
The financial statements are presented in Pound which is the Companys functional currency
Page 10 of 24
MM Group for Industry and International period ended Consolidated financial statements for
2 Basis for preparation of financial statements (continued)
D Use of estimates and
The preparation of the consolidated financial statements are in-accordance with the Egyptian Accounting Standards
requiring to make estimates and that affect assets and liabilities revenues and expenses
during the financial period
Actual results may differ from these estimates The estimates and assumptions are reviewed on-going basis and
the effects ofthe modification of the accounting estimates in the period in which estimates are revised
and estimates are mainly used in the application of pOlicies with significant impact on
balances included in the financial statements and which are disclosed under the following notes
Fixed assets
Investment Property
Financial instruments
Provisions
3 Significant accounting policies
The Company applies the following policies consistently and it is consistent with that applied in aU the financial years disclosed in these consolidated financial statements
3middot1 Foreign currencies translation
Transactions in foreign currencies are initially recorded using the exchanqe rate nrolinn on the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are retranslated the rates riiinn at the balance sheet date All differences are recoQnized in the statement of income
Nonmonetary items that are measured at historical cost in foreign currencies are translated using the rates prevailing at the date of the initial
3middot2 Fixed assets and its deprecation
a The first recognition and initial measurement
Fixed assets are stated at the historical cost after deducting accumulated rionrpltiM and accumulated impairment losses
b Subsequent Cost
Such cost includes the cost of replaCing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied aU other repair and maintenance costs are recoQnized in the statement of profit or loss as incurred
c Depreciation
Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The amount is carried on the income statement according to the method the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates
Asset Depreciation
Rate
Building facilities and decoration 5
Computers 50
Other assets 25
11 of 24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Financial Position Notes 3132020 31122019
Non-current assets EGP EGP
Fixed assets (4) 86440471 76496834
Investments property (5) 1 729214 1841501
Projects under construction (6) 1 368423 1230624
Investments in associates (7) 404055325 401 048237
Total non-current assets 493593433 480617196
Current assets
Inventory (8) 1 313570956 1 101305669
Receivables amp notes receivables (9) 637229013 507408742
Due from related parties (10-1 ) 3184050 4279957
Advances to suppliers 294097403 314570811
Debtors amp other debit balances (11 ) 191583225 204781 102
Investments at fair value through profit and loss (12) 49887412 50211 472
Cash on hand and at banks (13) 124372 089 149381124
Total current assets 2613924148 2331938877
Total assets 3107517 581 2812556073
Equity
Issued and paid up capital (14) 383625000 383625000
Legal reserve 45215631 45215631
General reserve 64462273 64462273
Gains arising from translating the financial statements 2107503
Retained earning 938137308 476806210
Profit for the period 1year 105921 669 459466852
Total equity of parent company 1 539469384 1429575966
Non-controlling interest 105001 856 104206372
Total equity 1644471240 1 533782338
Non-current liabilities
Deferred tax liability 667577 1165858
Total Non-current liabilities 667577 1 165858
Current liabilities
Provisions (15) 29418444 29516539
Credit Bank 393407855 280314215
Due to related parties (10-2) 110015968 116547206
Customers Advance payment 155060132 187884850
Suppliers amp notes payables (16) 612849427 535961 282
Creditors amp other credit balances (17) 66814287 48904115
Accrual income tax (18) 94812651 78479670
Total current liabilities 1462378764 1277 607 877
Total equity and liabilities 3107517581 281255amp 073
-The accompanying notes are an integral part of the consolidated financial statements - Auditors report attached
Chief F middot JSkk~ E
Khaled Gamal Mohamed A ~ Mahmoud Khaled HamcbtSftte111
I Officer
Page 4 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated- statement of income (profit and Loss) Notes 3132020 3132019
EGP EGP
Net sales (19) 2233087605 2896616975
Less
Cost of sales (20) (1 982271 285) (2 628954 186)
Gross profit 250816320 267662789
Less
Sales amp distribution expenses (21 ) (87167306) (73793010)
General amp administrative expenses (22) (6078663) (3891 705)
Depreciation of administrative assets (1 022942) (529796)
Total expenses (94268911) (78214511)
Net operating profit 156547409 189448278
(Less) 1Add
lossGain from subsidiaries and associated companies (7) (1 400484) 8802929
Takaful contribution for health insurance (4749966) (7268 111)
Income from investment property 2027831 1320000
Depreciation of investment property (112287) (114244)
(Loss)Gain from investments at fair value through profit and loss (2021 490) 1901 710
Capital loss (22206)
Finance expenses (11 991 655) (7097409)
Credit interest 804518 1510727
Provisions (15) (243454)
Provisions no longer required (15) 124953
Foreign currency exchange gain 1(loss) 687809 (3513956)
Net profit for the period before taxes 139894432 184746470
(Less) IAdd
Income tax
Deferred tax
(18) (33754343)
498281
(41353004)
(424911)
Net profit for the period after taxes 106638370 142968555
Distributed on follows
Owners of the parent company 105921 669 135344230
Non-controlling interest 716701 7624325
106638370 142968555
Earnings Per Share (EGPShare) (23) 014 022
-The accompanying notes are an integral part of the consolidated financial statements
Chairm~ Chief]SCial Officer Financial~~e~~k ~ __Ke~aIMohamed J NV ~ ~~yzjMahmoud Kh aled H arndY-Salerii
Page 5 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated statement of comprehensive Income
3132020 3132019 EGP EGP
Net profit for the period after taxes 106 638 370 142 968555
Add
Other comprehensive Income
Gains arising from translating the financial statements 2107503
Investments available for sale (net change at fair value) 30701
Total other comprehensive Income 108745873 142999256
Disturbed as follows
Owners of the parent company 108029172 135374931
Non-controlling interest 716701 7624325
Total other comprehensive Income 108745873 142999256
- The accompanying notes are an integral part of the consolidated financial statements
~~~Wl~e~ Osama Fath~~ ~crshy~r d Gamal Mohamed
Mahmoud
Page 6of24
MIVi ~roujJ for lIiuustly and II IltrnaUUIlal ( lade (vAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic Consolidated Statement of Change in Equity
Equity of the parent company Gains
3132019 Paid-up General
arising from translating
the financial Investments revaluation Retained Profit of the Total
Non-controlling
Capital Legal Reserve Reserve statements reserve earning period interest Total Equity EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Balance as of January 1 2019 306900000 32294029 64462273 (109950) 348764332 271245686 1023556370 113730348 1137286718
Transferred to retained earning 271245686 (271 245 686)
Control of subsidiaries adjustments 730652 730652 (19293672) (18563020)
Comprehensive Income for the period 30701 135344230 135374931 7624325 142999256
Balance as of 31 march 2019 306900000 32294029 64 462 273 (79249) 620740670 135344 230 1159661 953 102061 001 1261722954
3132020
Balance as of march 1 2020 383625000 45215631 64462273 476806210 459466852 1429575966 104206372 1 533782338
Transferred to retained earning 459466852 (459466852)
Retained earnings adjustment 1642417 1 642417 1642417
Control of subsidiaries adjustments 221 829 221829 78783 300612 2107503
Comprehensive Income for the period 105921 669 108029172 716701 108745873 2107503Balance as of 31 march 2020 383625000 45215631 64462273 938137308 105921669 1539469384 105001 856 1644 471240
- The accompanying notes are an integral part of the Consolidated financial statements
Financial Ma~ Chin Office~~~ ~~ O~ayKhaled Gamal Mohamed Mahmoud
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Cash Flows Notes
Cash flows from operating activities
Net profit before income tax
Adjustments to reconcile net profit to cash flows
From operating activities
Fixed assets depreciation (4)
Investment Property depreciation (5)
Gainloss from Investments in associated companies (7) Retained earnings adjustments Provisions no longer required (15) Provision (15)
Gains(Ioss) from investments at fair value through profit and (12)
loss
Finance expenses
Capital Gain
(Ioss)gain foreign currency exchange
Credit interest
3132020 EGP
139894432
5250951
112287
1400484 1642417 (124953)
2021490
11 991 655
22206
(687809) (804518)
3132019 EGP
184746470
2501 088
114244
(8802929)
243454
(1 901 710)
7097409
3513956 (1 510727)
Net operating income 160718642 186001255
Change in inventory (8) (212 265 287) (227 540 237)
Change in Receivables and notes receivables (9) (129820271) (166248332) Change in due from related parties (10middot1) 1 095907 702405
Change in Advance to suppliers 20473408 (27947820) Change in Debtors and other debit balances (11) 13197877 (24594693) Change in Suppliers and Notes payable (16) 76888 145 444165457
Change in Due to related parties (10-2) (6531238) (12544776) Change in Advance accounts Receivables (32824718) 29307216 Change in Creditors and other credit balances (17) 17910172 (13631 761) Cash flows (used in) 1provided by operating activities (91 157363) 187668714
Paid Income Tax
Used in provisions
Paid Debit Interest
(18) (17 421 362)
(11 991 655)
(11115702)
(537965)
(7097409)
Net Cash flow (used in)1 provided by operating activities (120570380) 168917638
Cash flows from investment activities
(Payments) for purchase of fixed assets and projects under
construction
(4) (6) (8465305) (3641 529)
(Payments) for associated company (7) (6589774) (17500000)
(Payments) for investment in subsidiaries(net after cash
balance) (2272 113) (18563020)
Proceeds from credit interest 804518 1510727
Foreign currency exchange 687809 (3513956)
Proceeds from Investments at fair value through profit and loss (1 697430) (441 750)
Net cash flows (used in) by investment activities (17 532 295) (42149528)
Cash flows from financing activities
Change in bank over draft 113093640 (59815728)
Net cash flows provided by(used in financing activities 113093640 (59815728)
Net change in cash and cash equivalents during the year (25009035) 66952382
Cash and cash equivalents at the beginning of the year 149381 124 98040434 Cash and cash equivalents at the end of the year (13) 124372089 164992816
Financial Manager
OsamaF~l _
O~~-(JPage8of24
Chairman
Khaled Gamal Mohamed Mahmoud
~~~L
MM Group for Industry and International Trade (5 rlorl 31
Notes to the consolidated financial statements
1 About The company
A Companys background
MM Group for Industry and International Trade (SAE) is established under the Law No159 of 1981 and its executive regulations and considering the provisions of law No 95 of 1992 and its executive regulations and has been reaistered in the commercial reaister under No609 10 of Ramadan city on January 3 1996
Based on a Extraordinary general assembly held on April 5 2016 the decree of the general authority for investment and free zones no 6382 year 2016 which decided to the company into shy
bull MM Group company for the industry and international ( The Splitter) bull MTI company for real estate investment (SAE) (The Spfitted)
And use the date of the of the company at book value on the Companys financial statements at December 31 2015 as a basis to assess the assets and liabilities of the company for the purpose of solit and it was registered in the comercial reaister on december 29 2016
6th - According to the as of 2017 that agree to make an Initial public offering of 30of the shares of MM Group for industry and international trade company (SAE) in the Egyptian stock market on april 11 2017
B Companys Purpose
Producing and assembling vehicles agricultural tractors and related equipment heavy and light means of transportation and performing engine overhauls (b) maintenance installation and repairs through spl3cii3lized service (c) trading of cars agricultural tractors and related equipment loaders all heavy and light means of transportation including required spare parts maintenance and other related activities
and cladding pipes which is by the company
producing the required production supplies to serve the Companys purposes
all goods and products authorized for import in accordance to the Law
utilizing Egyptian commercial agencies for trading in electronic devices related to remote sensing and providing Advance technical and technological trading of telecommunication devices and mobile phones and the maintenance and reoair there of through soecialized service centres
the sale and of real estate properties land and movable assets to serve the Companys purposes (except for areas mentioned in the Ministerial Decree No 12 of Law No 94 of 2005 as well as the Sinai Peninsula and Shalateen which requires a prior approval from GAFls chairman)
assembling and manufactUring split air conditioners and mobile in one of the new industrial areas
oVMrfiM all goods and products authorized for export in accordance to the Law
Selling all goods and products mentioned as a part of the companys purpose including HhiI agricultural fork lift and loader
Sale of mobile lines and mobile recharge cards
Sale of electrical and non-electrical household appliances
The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in Egypt or abroad The Company may also merge with purchase or such according to the Drovisions of the Law and its Executive
Page 9 of 24
MM Group for Industry and International Trade (SAE) ended March 2020
1 About The company (continued)
C Companys location
- The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo
D Companys Duration
the fiscal year for the company begins on the 1s1 of January and ends on December of each year
- The duration is twenty-five years from the date of in the commercial
E Approval of the financial statements
- The consolidated financial statements of the Company for the period ended 31 March 2020 were authorized for issuance in accordance with a decree ofthe board of directors held on June 9 2020
2 Basis for preparation of financial statements
A Basis of consolidation
-The consolidated financial statements are prepared by consolidating the financial statements of the Holding Company and its subsidiaries through collecting similar items of assets liabilities equity revenues and expenses
-The investment cost borne the holding company in its subsidiaries was eliminated along with the holding companys share in the equity of each subsidiary
- Unrealized intercompany transactions are eliminated
- Non-controllable interest in net equity and in net profit of subsidiaries controlled by the company are included in the equity in the consolidated financial statements under an clause non-controlling interests and are calculated as eaual to their share in the carrying value of the net assets of the
-The acquisition cost was distributed as follows-
The fair value of assets and liabilities owned at the date of acquisition and within the limits of the share of the parent company that was acquired on that date
- The additional acquisition cost over the share of the parent companys share in the capital of the subsidiary companies is recognized as goodwill
Scope of consolidated financial statements
The consolidated financial statements include the companies in which the company contributes more than 50 of its capital and it has control over it and companies with less than 50 contribution The company has the ability to control the companys decisions The following are the companies listed in the consolidated financial statements
Investment
MM for Export amp Import 99
Qanawat for trading and distribution company 7048
Mediterranean industrial company 9910
B Commitment to accounting standards and laws
These financial statements were in accordance with CUVULIGII Accounting Standards and prevailing
laws and regulations
C Disclosure and presentation currency
The financial statements are presented in Pound which is the Companys functional currency
Page 10 of 24
MM Group for Industry and International period ended Consolidated financial statements for
2 Basis for preparation of financial statements (continued)
D Use of estimates and
The preparation of the consolidated financial statements are in-accordance with the Egyptian Accounting Standards
requiring to make estimates and that affect assets and liabilities revenues and expenses
during the financial period
Actual results may differ from these estimates The estimates and assumptions are reviewed on-going basis and
the effects ofthe modification of the accounting estimates in the period in which estimates are revised
and estimates are mainly used in the application of pOlicies with significant impact on
balances included in the financial statements and which are disclosed under the following notes
Fixed assets
Investment Property
Financial instruments
Provisions
3 Significant accounting policies
The Company applies the following policies consistently and it is consistent with that applied in aU the financial years disclosed in these consolidated financial statements
3middot1 Foreign currencies translation
Transactions in foreign currencies are initially recorded using the exchanqe rate nrolinn on the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are retranslated the rates riiinn at the balance sheet date All differences are recoQnized in the statement of income
Nonmonetary items that are measured at historical cost in foreign currencies are translated using the rates prevailing at the date of the initial
3middot2 Fixed assets and its deprecation
a The first recognition and initial measurement
Fixed assets are stated at the historical cost after deducting accumulated rionrpltiM and accumulated impairment losses
b Subsequent Cost
Such cost includes the cost of replaCing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied aU other repair and maintenance costs are recoQnized in the statement of profit or loss as incurred
c Depreciation
Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The amount is carried on the income statement according to the method the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates
Asset Depreciation
Rate
Building facilities and decoration 5
Computers 50
Other assets 25
11 of 24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated- statement of income (profit and Loss) Notes 3132020 3132019
EGP EGP
Net sales (19) 2233087605 2896616975
Less
Cost of sales (20) (1 982271 285) (2 628954 186)
Gross profit 250816320 267662789
Less
Sales amp distribution expenses (21 ) (87167306) (73793010)
General amp administrative expenses (22) (6078663) (3891 705)
Depreciation of administrative assets (1 022942) (529796)
Total expenses (94268911) (78214511)
Net operating profit 156547409 189448278
(Less) 1Add
lossGain from subsidiaries and associated companies (7) (1 400484) 8802929
Takaful contribution for health insurance (4749966) (7268 111)
Income from investment property 2027831 1320000
Depreciation of investment property (112287) (114244)
(Loss)Gain from investments at fair value through profit and loss (2021 490) 1901 710
Capital loss (22206)
Finance expenses (11 991 655) (7097409)
Credit interest 804518 1510727
Provisions (15) (243454)
Provisions no longer required (15) 124953
Foreign currency exchange gain 1(loss) 687809 (3513956)
Net profit for the period before taxes 139894432 184746470
(Less) IAdd
Income tax
Deferred tax
(18) (33754343)
498281
(41353004)
(424911)
Net profit for the period after taxes 106638370 142968555
Distributed on follows
Owners of the parent company 105921 669 135344230
Non-controlling interest 716701 7624325
106638370 142968555
Earnings Per Share (EGPShare) (23) 014 022
-The accompanying notes are an integral part of the consolidated financial statements
Chairm~ Chief]SCial Officer Financial~~e~~k ~ __Ke~aIMohamed J NV ~ ~~yzjMahmoud Kh aled H arndY-Salerii
Page 5 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated statement of comprehensive Income
3132020 3132019 EGP EGP
Net profit for the period after taxes 106 638 370 142 968555
Add
Other comprehensive Income
Gains arising from translating the financial statements 2107503
Investments available for sale (net change at fair value) 30701
Total other comprehensive Income 108745873 142999256
Disturbed as follows
Owners of the parent company 108029172 135374931
Non-controlling interest 716701 7624325
Total other comprehensive Income 108745873 142999256
- The accompanying notes are an integral part of the consolidated financial statements
~~~Wl~e~ Osama Fath~~ ~crshy~r d Gamal Mohamed
Mahmoud
Page 6of24
MIVi ~roujJ for lIiuustly and II IltrnaUUIlal ( lade (vAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic Consolidated Statement of Change in Equity
Equity of the parent company Gains
3132019 Paid-up General
arising from translating
the financial Investments revaluation Retained Profit of the Total
Non-controlling
Capital Legal Reserve Reserve statements reserve earning period interest Total Equity EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Balance as of January 1 2019 306900000 32294029 64462273 (109950) 348764332 271245686 1023556370 113730348 1137286718
Transferred to retained earning 271245686 (271 245 686)
Control of subsidiaries adjustments 730652 730652 (19293672) (18563020)
Comprehensive Income for the period 30701 135344230 135374931 7624325 142999256
Balance as of 31 march 2019 306900000 32294029 64 462 273 (79249) 620740670 135344 230 1159661 953 102061 001 1261722954
3132020
Balance as of march 1 2020 383625000 45215631 64462273 476806210 459466852 1429575966 104206372 1 533782338
Transferred to retained earning 459466852 (459466852)
Retained earnings adjustment 1642417 1 642417 1642417
Control of subsidiaries adjustments 221 829 221829 78783 300612 2107503
Comprehensive Income for the period 105921 669 108029172 716701 108745873 2107503Balance as of 31 march 2020 383625000 45215631 64462273 938137308 105921669 1539469384 105001 856 1644 471240
- The accompanying notes are an integral part of the Consolidated financial statements
Financial Ma~ Chin Office~~~ ~~ O~ayKhaled Gamal Mohamed Mahmoud
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Cash Flows Notes
Cash flows from operating activities
Net profit before income tax
Adjustments to reconcile net profit to cash flows
From operating activities
Fixed assets depreciation (4)
Investment Property depreciation (5)
Gainloss from Investments in associated companies (7) Retained earnings adjustments Provisions no longer required (15) Provision (15)
Gains(Ioss) from investments at fair value through profit and (12)
loss
Finance expenses
Capital Gain
(Ioss)gain foreign currency exchange
Credit interest
3132020 EGP
139894432
5250951
112287
1400484 1642417 (124953)
2021490
11 991 655
22206
(687809) (804518)
3132019 EGP
184746470
2501 088
114244
(8802929)
243454
(1 901 710)
7097409
3513956 (1 510727)
Net operating income 160718642 186001255
Change in inventory (8) (212 265 287) (227 540 237)
Change in Receivables and notes receivables (9) (129820271) (166248332) Change in due from related parties (10middot1) 1 095907 702405
Change in Advance to suppliers 20473408 (27947820) Change in Debtors and other debit balances (11) 13197877 (24594693) Change in Suppliers and Notes payable (16) 76888 145 444165457
Change in Due to related parties (10-2) (6531238) (12544776) Change in Advance accounts Receivables (32824718) 29307216 Change in Creditors and other credit balances (17) 17910172 (13631 761) Cash flows (used in) 1provided by operating activities (91 157363) 187668714
Paid Income Tax
Used in provisions
Paid Debit Interest
(18) (17 421 362)
(11 991 655)
(11115702)
(537965)
(7097409)
Net Cash flow (used in)1 provided by operating activities (120570380) 168917638
Cash flows from investment activities
(Payments) for purchase of fixed assets and projects under
construction
(4) (6) (8465305) (3641 529)
(Payments) for associated company (7) (6589774) (17500000)
(Payments) for investment in subsidiaries(net after cash
balance) (2272 113) (18563020)
Proceeds from credit interest 804518 1510727
Foreign currency exchange 687809 (3513956)
Proceeds from Investments at fair value through profit and loss (1 697430) (441 750)
Net cash flows (used in) by investment activities (17 532 295) (42149528)
Cash flows from financing activities
Change in bank over draft 113093640 (59815728)
Net cash flows provided by(used in financing activities 113093640 (59815728)
Net change in cash and cash equivalents during the year (25009035) 66952382
Cash and cash equivalents at the beginning of the year 149381 124 98040434 Cash and cash equivalents at the end of the year (13) 124372089 164992816
Financial Manager
OsamaF~l _
O~~-(JPage8of24
Chairman
Khaled Gamal Mohamed Mahmoud
~~~L
MM Group for Industry and International Trade (5 rlorl 31
Notes to the consolidated financial statements
1 About The company
A Companys background
MM Group for Industry and International Trade (SAE) is established under the Law No159 of 1981 and its executive regulations and considering the provisions of law No 95 of 1992 and its executive regulations and has been reaistered in the commercial reaister under No609 10 of Ramadan city on January 3 1996
Based on a Extraordinary general assembly held on April 5 2016 the decree of the general authority for investment and free zones no 6382 year 2016 which decided to the company into shy
bull MM Group company for the industry and international ( The Splitter) bull MTI company for real estate investment (SAE) (The Spfitted)
And use the date of the of the company at book value on the Companys financial statements at December 31 2015 as a basis to assess the assets and liabilities of the company for the purpose of solit and it was registered in the comercial reaister on december 29 2016
6th - According to the as of 2017 that agree to make an Initial public offering of 30of the shares of MM Group for industry and international trade company (SAE) in the Egyptian stock market on april 11 2017
B Companys Purpose
Producing and assembling vehicles agricultural tractors and related equipment heavy and light means of transportation and performing engine overhauls (b) maintenance installation and repairs through spl3cii3lized service (c) trading of cars agricultural tractors and related equipment loaders all heavy and light means of transportation including required spare parts maintenance and other related activities
and cladding pipes which is by the company
producing the required production supplies to serve the Companys purposes
all goods and products authorized for import in accordance to the Law
utilizing Egyptian commercial agencies for trading in electronic devices related to remote sensing and providing Advance technical and technological trading of telecommunication devices and mobile phones and the maintenance and reoair there of through soecialized service centres
the sale and of real estate properties land and movable assets to serve the Companys purposes (except for areas mentioned in the Ministerial Decree No 12 of Law No 94 of 2005 as well as the Sinai Peninsula and Shalateen which requires a prior approval from GAFls chairman)
assembling and manufactUring split air conditioners and mobile in one of the new industrial areas
oVMrfiM all goods and products authorized for export in accordance to the Law
Selling all goods and products mentioned as a part of the companys purpose including HhiI agricultural fork lift and loader
Sale of mobile lines and mobile recharge cards
Sale of electrical and non-electrical household appliances
The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in Egypt or abroad The Company may also merge with purchase or such according to the Drovisions of the Law and its Executive
Page 9 of 24
MM Group for Industry and International Trade (SAE) ended March 2020
1 About The company (continued)
C Companys location
- The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo
D Companys Duration
the fiscal year for the company begins on the 1s1 of January and ends on December of each year
- The duration is twenty-five years from the date of in the commercial
E Approval of the financial statements
- The consolidated financial statements of the Company for the period ended 31 March 2020 were authorized for issuance in accordance with a decree ofthe board of directors held on June 9 2020
2 Basis for preparation of financial statements
A Basis of consolidation
-The consolidated financial statements are prepared by consolidating the financial statements of the Holding Company and its subsidiaries through collecting similar items of assets liabilities equity revenues and expenses
-The investment cost borne the holding company in its subsidiaries was eliminated along with the holding companys share in the equity of each subsidiary
- Unrealized intercompany transactions are eliminated
- Non-controllable interest in net equity and in net profit of subsidiaries controlled by the company are included in the equity in the consolidated financial statements under an clause non-controlling interests and are calculated as eaual to their share in the carrying value of the net assets of the
-The acquisition cost was distributed as follows-
The fair value of assets and liabilities owned at the date of acquisition and within the limits of the share of the parent company that was acquired on that date
- The additional acquisition cost over the share of the parent companys share in the capital of the subsidiary companies is recognized as goodwill
Scope of consolidated financial statements
The consolidated financial statements include the companies in which the company contributes more than 50 of its capital and it has control over it and companies with less than 50 contribution The company has the ability to control the companys decisions The following are the companies listed in the consolidated financial statements
Investment
MM for Export amp Import 99
Qanawat for trading and distribution company 7048
Mediterranean industrial company 9910
B Commitment to accounting standards and laws
These financial statements were in accordance with CUVULIGII Accounting Standards and prevailing
laws and regulations
C Disclosure and presentation currency
The financial statements are presented in Pound which is the Companys functional currency
Page 10 of 24
MM Group for Industry and International period ended Consolidated financial statements for
2 Basis for preparation of financial statements (continued)
D Use of estimates and
The preparation of the consolidated financial statements are in-accordance with the Egyptian Accounting Standards
requiring to make estimates and that affect assets and liabilities revenues and expenses
during the financial period
Actual results may differ from these estimates The estimates and assumptions are reviewed on-going basis and
the effects ofthe modification of the accounting estimates in the period in which estimates are revised
and estimates are mainly used in the application of pOlicies with significant impact on
balances included in the financial statements and which are disclosed under the following notes
Fixed assets
Investment Property
Financial instruments
Provisions
3 Significant accounting policies
The Company applies the following policies consistently and it is consistent with that applied in aU the financial years disclosed in these consolidated financial statements
3middot1 Foreign currencies translation
Transactions in foreign currencies are initially recorded using the exchanqe rate nrolinn on the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are retranslated the rates riiinn at the balance sheet date All differences are recoQnized in the statement of income
Nonmonetary items that are measured at historical cost in foreign currencies are translated using the rates prevailing at the date of the initial
3middot2 Fixed assets and its deprecation
a The first recognition and initial measurement
Fixed assets are stated at the historical cost after deducting accumulated rionrpltiM and accumulated impairment losses
b Subsequent Cost
Such cost includes the cost of replaCing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied aU other repair and maintenance costs are recoQnized in the statement of profit or loss as incurred
c Depreciation
Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The amount is carried on the income statement according to the method the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates
Asset Depreciation
Rate
Building facilities and decoration 5
Computers 50
Other assets 25
11 of 24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated statement of comprehensive Income
3132020 3132019 EGP EGP
Net profit for the period after taxes 106 638 370 142 968555
Add
Other comprehensive Income
Gains arising from translating the financial statements 2107503
Investments available for sale (net change at fair value) 30701
Total other comprehensive Income 108745873 142999256
Disturbed as follows
Owners of the parent company 108029172 135374931
Non-controlling interest 716701 7624325
Total other comprehensive Income 108745873 142999256
- The accompanying notes are an integral part of the consolidated financial statements
~~~Wl~e~ Osama Fath~~ ~crshy~r d Gamal Mohamed
Mahmoud
Page 6of24
MIVi ~roujJ for lIiuustly and II IltrnaUUIlal ( lade (vAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic Consolidated Statement of Change in Equity
Equity of the parent company Gains
3132019 Paid-up General
arising from translating
the financial Investments revaluation Retained Profit of the Total
Non-controlling
Capital Legal Reserve Reserve statements reserve earning period interest Total Equity EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Balance as of January 1 2019 306900000 32294029 64462273 (109950) 348764332 271245686 1023556370 113730348 1137286718
Transferred to retained earning 271245686 (271 245 686)
Control of subsidiaries adjustments 730652 730652 (19293672) (18563020)
Comprehensive Income for the period 30701 135344230 135374931 7624325 142999256
Balance as of 31 march 2019 306900000 32294029 64 462 273 (79249) 620740670 135344 230 1159661 953 102061 001 1261722954
3132020
Balance as of march 1 2020 383625000 45215631 64462273 476806210 459466852 1429575966 104206372 1 533782338
Transferred to retained earning 459466852 (459466852)
Retained earnings adjustment 1642417 1 642417 1642417
Control of subsidiaries adjustments 221 829 221829 78783 300612 2107503
Comprehensive Income for the period 105921 669 108029172 716701 108745873 2107503Balance as of 31 march 2020 383625000 45215631 64462273 938137308 105921669 1539469384 105001 856 1644 471240
- The accompanying notes are an integral part of the Consolidated financial statements
Financial Ma~ Chin Office~~~ ~~ O~ayKhaled Gamal Mohamed Mahmoud
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Cash Flows Notes
Cash flows from operating activities
Net profit before income tax
Adjustments to reconcile net profit to cash flows
From operating activities
Fixed assets depreciation (4)
Investment Property depreciation (5)
Gainloss from Investments in associated companies (7) Retained earnings adjustments Provisions no longer required (15) Provision (15)
Gains(Ioss) from investments at fair value through profit and (12)
loss
Finance expenses
Capital Gain
(Ioss)gain foreign currency exchange
Credit interest
3132020 EGP
139894432
5250951
112287
1400484 1642417 (124953)
2021490
11 991 655
22206
(687809) (804518)
3132019 EGP
184746470
2501 088
114244
(8802929)
243454
(1 901 710)
7097409
3513956 (1 510727)
Net operating income 160718642 186001255
Change in inventory (8) (212 265 287) (227 540 237)
Change in Receivables and notes receivables (9) (129820271) (166248332) Change in due from related parties (10middot1) 1 095907 702405
Change in Advance to suppliers 20473408 (27947820) Change in Debtors and other debit balances (11) 13197877 (24594693) Change in Suppliers and Notes payable (16) 76888 145 444165457
Change in Due to related parties (10-2) (6531238) (12544776) Change in Advance accounts Receivables (32824718) 29307216 Change in Creditors and other credit balances (17) 17910172 (13631 761) Cash flows (used in) 1provided by operating activities (91 157363) 187668714
Paid Income Tax
Used in provisions
Paid Debit Interest
(18) (17 421 362)
(11 991 655)
(11115702)
(537965)
(7097409)
Net Cash flow (used in)1 provided by operating activities (120570380) 168917638
Cash flows from investment activities
(Payments) for purchase of fixed assets and projects under
construction
(4) (6) (8465305) (3641 529)
(Payments) for associated company (7) (6589774) (17500000)
(Payments) for investment in subsidiaries(net after cash
balance) (2272 113) (18563020)
Proceeds from credit interest 804518 1510727
Foreign currency exchange 687809 (3513956)
Proceeds from Investments at fair value through profit and loss (1 697430) (441 750)
Net cash flows (used in) by investment activities (17 532 295) (42149528)
Cash flows from financing activities
Change in bank over draft 113093640 (59815728)
Net cash flows provided by(used in financing activities 113093640 (59815728)
Net change in cash and cash equivalents during the year (25009035) 66952382
Cash and cash equivalents at the beginning of the year 149381 124 98040434 Cash and cash equivalents at the end of the year (13) 124372089 164992816
Financial Manager
OsamaF~l _
O~~-(JPage8of24
Chairman
Khaled Gamal Mohamed Mahmoud
~~~L
MM Group for Industry and International Trade (5 rlorl 31
Notes to the consolidated financial statements
1 About The company
A Companys background
MM Group for Industry and International Trade (SAE) is established under the Law No159 of 1981 and its executive regulations and considering the provisions of law No 95 of 1992 and its executive regulations and has been reaistered in the commercial reaister under No609 10 of Ramadan city on January 3 1996
Based on a Extraordinary general assembly held on April 5 2016 the decree of the general authority for investment and free zones no 6382 year 2016 which decided to the company into shy
bull MM Group company for the industry and international ( The Splitter) bull MTI company for real estate investment (SAE) (The Spfitted)
And use the date of the of the company at book value on the Companys financial statements at December 31 2015 as a basis to assess the assets and liabilities of the company for the purpose of solit and it was registered in the comercial reaister on december 29 2016
6th - According to the as of 2017 that agree to make an Initial public offering of 30of the shares of MM Group for industry and international trade company (SAE) in the Egyptian stock market on april 11 2017
B Companys Purpose
Producing and assembling vehicles agricultural tractors and related equipment heavy and light means of transportation and performing engine overhauls (b) maintenance installation and repairs through spl3cii3lized service (c) trading of cars agricultural tractors and related equipment loaders all heavy and light means of transportation including required spare parts maintenance and other related activities
and cladding pipes which is by the company
producing the required production supplies to serve the Companys purposes
all goods and products authorized for import in accordance to the Law
utilizing Egyptian commercial agencies for trading in electronic devices related to remote sensing and providing Advance technical and technological trading of telecommunication devices and mobile phones and the maintenance and reoair there of through soecialized service centres
the sale and of real estate properties land and movable assets to serve the Companys purposes (except for areas mentioned in the Ministerial Decree No 12 of Law No 94 of 2005 as well as the Sinai Peninsula and Shalateen which requires a prior approval from GAFls chairman)
assembling and manufactUring split air conditioners and mobile in one of the new industrial areas
oVMrfiM all goods and products authorized for export in accordance to the Law
Selling all goods and products mentioned as a part of the companys purpose including HhiI agricultural fork lift and loader
Sale of mobile lines and mobile recharge cards
Sale of electrical and non-electrical household appliances
The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in Egypt or abroad The Company may also merge with purchase or such according to the Drovisions of the Law and its Executive
Page 9 of 24
MM Group for Industry and International Trade (SAE) ended March 2020
1 About The company (continued)
C Companys location
- The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo
D Companys Duration
the fiscal year for the company begins on the 1s1 of January and ends on December of each year
- The duration is twenty-five years from the date of in the commercial
E Approval of the financial statements
- The consolidated financial statements of the Company for the period ended 31 March 2020 were authorized for issuance in accordance with a decree ofthe board of directors held on June 9 2020
2 Basis for preparation of financial statements
A Basis of consolidation
-The consolidated financial statements are prepared by consolidating the financial statements of the Holding Company and its subsidiaries through collecting similar items of assets liabilities equity revenues and expenses
-The investment cost borne the holding company in its subsidiaries was eliminated along with the holding companys share in the equity of each subsidiary
- Unrealized intercompany transactions are eliminated
- Non-controllable interest in net equity and in net profit of subsidiaries controlled by the company are included in the equity in the consolidated financial statements under an clause non-controlling interests and are calculated as eaual to their share in the carrying value of the net assets of the
-The acquisition cost was distributed as follows-
The fair value of assets and liabilities owned at the date of acquisition and within the limits of the share of the parent company that was acquired on that date
- The additional acquisition cost over the share of the parent companys share in the capital of the subsidiary companies is recognized as goodwill
Scope of consolidated financial statements
The consolidated financial statements include the companies in which the company contributes more than 50 of its capital and it has control over it and companies with less than 50 contribution The company has the ability to control the companys decisions The following are the companies listed in the consolidated financial statements
Investment
MM for Export amp Import 99
Qanawat for trading and distribution company 7048
Mediterranean industrial company 9910
B Commitment to accounting standards and laws
These financial statements were in accordance with CUVULIGII Accounting Standards and prevailing
laws and regulations
C Disclosure and presentation currency
The financial statements are presented in Pound which is the Companys functional currency
Page 10 of 24
MM Group for Industry and International period ended Consolidated financial statements for
2 Basis for preparation of financial statements (continued)
D Use of estimates and
The preparation of the consolidated financial statements are in-accordance with the Egyptian Accounting Standards
requiring to make estimates and that affect assets and liabilities revenues and expenses
during the financial period
Actual results may differ from these estimates The estimates and assumptions are reviewed on-going basis and
the effects ofthe modification of the accounting estimates in the period in which estimates are revised
and estimates are mainly used in the application of pOlicies with significant impact on
balances included in the financial statements and which are disclosed under the following notes
Fixed assets
Investment Property
Financial instruments
Provisions
3 Significant accounting policies
The Company applies the following policies consistently and it is consistent with that applied in aU the financial years disclosed in these consolidated financial statements
3middot1 Foreign currencies translation
Transactions in foreign currencies are initially recorded using the exchanqe rate nrolinn on the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are retranslated the rates riiinn at the balance sheet date All differences are recoQnized in the statement of income
Nonmonetary items that are measured at historical cost in foreign currencies are translated using the rates prevailing at the date of the initial
3middot2 Fixed assets and its deprecation
a The first recognition and initial measurement
Fixed assets are stated at the historical cost after deducting accumulated rionrpltiM and accumulated impairment losses
b Subsequent Cost
Such cost includes the cost of replaCing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied aU other repair and maintenance costs are recoQnized in the statement of profit or loss as incurred
c Depreciation
Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The amount is carried on the income statement according to the method the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates
Asset Depreciation
Rate
Building facilities and decoration 5
Computers 50
Other assets 25
11 of 24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MIVi ~roujJ for lIiuustly and II IltrnaUUIlal ( lade (vAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic Consolidated Statement of Change in Equity
Equity of the parent company Gains
3132019 Paid-up General
arising from translating
the financial Investments revaluation Retained Profit of the Total
Non-controlling
Capital Legal Reserve Reserve statements reserve earning period interest Total Equity EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Balance as of January 1 2019 306900000 32294029 64462273 (109950) 348764332 271245686 1023556370 113730348 1137286718
Transferred to retained earning 271245686 (271 245 686)
Control of subsidiaries adjustments 730652 730652 (19293672) (18563020)
Comprehensive Income for the period 30701 135344230 135374931 7624325 142999256
Balance as of 31 march 2019 306900000 32294029 64 462 273 (79249) 620740670 135344 230 1159661 953 102061 001 1261722954
3132020
Balance as of march 1 2020 383625000 45215631 64462273 476806210 459466852 1429575966 104206372 1 533782338
Transferred to retained earning 459466852 (459466852)
Retained earnings adjustment 1642417 1 642417 1642417
Control of subsidiaries adjustments 221 829 221829 78783 300612 2107503
Comprehensive Income for the period 105921 669 108029172 716701 108745873 2107503Balance as of 31 march 2020 383625000 45215631 64462273 938137308 105921669 1539469384 105001 856 1644 471240
- The accompanying notes are an integral part of the Consolidated financial statements
Financial Ma~ Chin Office~~~ ~~ O~ayKhaled Gamal Mohamed Mahmoud
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Cash Flows Notes
Cash flows from operating activities
Net profit before income tax
Adjustments to reconcile net profit to cash flows
From operating activities
Fixed assets depreciation (4)
Investment Property depreciation (5)
Gainloss from Investments in associated companies (7) Retained earnings adjustments Provisions no longer required (15) Provision (15)
Gains(Ioss) from investments at fair value through profit and (12)
loss
Finance expenses
Capital Gain
(Ioss)gain foreign currency exchange
Credit interest
3132020 EGP
139894432
5250951
112287
1400484 1642417 (124953)
2021490
11 991 655
22206
(687809) (804518)
3132019 EGP
184746470
2501 088
114244
(8802929)
243454
(1 901 710)
7097409
3513956 (1 510727)
Net operating income 160718642 186001255
Change in inventory (8) (212 265 287) (227 540 237)
Change in Receivables and notes receivables (9) (129820271) (166248332) Change in due from related parties (10middot1) 1 095907 702405
Change in Advance to suppliers 20473408 (27947820) Change in Debtors and other debit balances (11) 13197877 (24594693) Change in Suppliers and Notes payable (16) 76888 145 444165457
Change in Due to related parties (10-2) (6531238) (12544776) Change in Advance accounts Receivables (32824718) 29307216 Change in Creditors and other credit balances (17) 17910172 (13631 761) Cash flows (used in) 1provided by operating activities (91 157363) 187668714
Paid Income Tax
Used in provisions
Paid Debit Interest
(18) (17 421 362)
(11 991 655)
(11115702)
(537965)
(7097409)
Net Cash flow (used in)1 provided by operating activities (120570380) 168917638
Cash flows from investment activities
(Payments) for purchase of fixed assets and projects under
construction
(4) (6) (8465305) (3641 529)
(Payments) for associated company (7) (6589774) (17500000)
(Payments) for investment in subsidiaries(net after cash
balance) (2272 113) (18563020)
Proceeds from credit interest 804518 1510727
Foreign currency exchange 687809 (3513956)
Proceeds from Investments at fair value through profit and loss (1 697430) (441 750)
Net cash flows (used in) by investment activities (17 532 295) (42149528)
Cash flows from financing activities
Change in bank over draft 113093640 (59815728)
Net cash flows provided by(used in financing activities 113093640 (59815728)
Net change in cash and cash equivalents during the year (25009035) 66952382
Cash and cash equivalents at the beginning of the year 149381 124 98040434 Cash and cash equivalents at the end of the year (13) 124372089 164992816
Financial Manager
OsamaF~l _
O~~-(JPage8of24
Chairman
Khaled Gamal Mohamed Mahmoud
~~~L
MM Group for Industry and International Trade (5 rlorl 31
Notes to the consolidated financial statements
1 About The company
A Companys background
MM Group for Industry and International Trade (SAE) is established under the Law No159 of 1981 and its executive regulations and considering the provisions of law No 95 of 1992 and its executive regulations and has been reaistered in the commercial reaister under No609 10 of Ramadan city on January 3 1996
Based on a Extraordinary general assembly held on April 5 2016 the decree of the general authority for investment and free zones no 6382 year 2016 which decided to the company into shy
bull MM Group company for the industry and international ( The Splitter) bull MTI company for real estate investment (SAE) (The Spfitted)
And use the date of the of the company at book value on the Companys financial statements at December 31 2015 as a basis to assess the assets and liabilities of the company for the purpose of solit and it was registered in the comercial reaister on december 29 2016
6th - According to the as of 2017 that agree to make an Initial public offering of 30of the shares of MM Group for industry and international trade company (SAE) in the Egyptian stock market on april 11 2017
B Companys Purpose
Producing and assembling vehicles agricultural tractors and related equipment heavy and light means of transportation and performing engine overhauls (b) maintenance installation and repairs through spl3cii3lized service (c) trading of cars agricultural tractors and related equipment loaders all heavy and light means of transportation including required spare parts maintenance and other related activities
and cladding pipes which is by the company
producing the required production supplies to serve the Companys purposes
all goods and products authorized for import in accordance to the Law
utilizing Egyptian commercial agencies for trading in electronic devices related to remote sensing and providing Advance technical and technological trading of telecommunication devices and mobile phones and the maintenance and reoair there of through soecialized service centres
the sale and of real estate properties land and movable assets to serve the Companys purposes (except for areas mentioned in the Ministerial Decree No 12 of Law No 94 of 2005 as well as the Sinai Peninsula and Shalateen which requires a prior approval from GAFls chairman)
assembling and manufactUring split air conditioners and mobile in one of the new industrial areas
oVMrfiM all goods and products authorized for export in accordance to the Law
Selling all goods and products mentioned as a part of the companys purpose including HhiI agricultural fork lift and loader
Sale of mobile lines and mobile recharge cards
Sale of electrical and non-electrical household appliances
The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in Egypt or abroad The Company may also merge with purchase or such according to the Drovisions of the Law and its Executive
Page 9 of 24
MM Group for Industry and International Trade (SAE) ended March 2020
1 About The company (continued)
C Companys location
- The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo
D Companys Duration
the fiscal year for the company begins on the 1s1 of January and ends on December of each year
- The duration is twenty-five years from the date of in the commercial
E Approval of the financial statements
- The consolidated financial statements of the Company for the period ended 31 March 2020 were authorized for issuance in accordance with a decree ofthe board of directors held on June 9 2020
2 Basis for preparation of financial statements
A Basis of consolidation
-The consolidated financial statements are prepared by consolidating the financial statements of the Holding Company and its subsidiaries through collecting similar items of assets liabilities equity revenues and expenses
-The investment cost borne the holding company in its subsidiaries was eliminated along with the holding companys share in the equity of each subsidiary
- Unrealized intercompany transactions are eliminated
- Non-controllable interest in net equity and in net profit of subsidiaries controlled by the company are included in the equity in the consolidated financial statements under an clause non-controlling interests and are calculated as eaual to their share in the carrying value of the net assets of the
-The acquisition cost was distributed as follows-
The fair value of assets and liabilities owned at the date of acquisition and within the limits of the share of the parent company that was acquired on that date
- The additional acquisition cost over the share of the parent companys share in the capital of the subsidiary companies is recognized as goodwill
Scope of consolidated financial statements
The consolidated financial statements include the companies in which the company contributes more than 50 of its capital and it has control over it and companies with less than 50 contribution The company has the ability to control the companys decisions The following are the companies listed in the consolidated financial statements
Investment
MM for Export amp Import 99
Qanawat for trading and distribution company 7048
Mediterranean industrial company 9910
B Commitment to accounting standards and laws
These financial statements were in accordance with CUVULIGII Accounting Standards and prevailing
laws and regulations
C Disclosure and presentation currency
The financial statements are presented in Pound which is the Companys functional currency
Page 10 of 24
MM Group for Industry and International period ended Consolidated financial statements for
2 Basis for preparation of financial statements (continued)
D Use of estimates and
The preparation of the consolidated financial statements are in-accordance with the Egyptian Accounting Standards
requiring to make estimates and that affect assets and liabilities revenues and expenses
during the financial period
Actual results may differ from these estimates The estimates and assumptions are reviewed on-going basis and
the effects ofthe modification of the accounting estimates in the period in which estimates are revised
and estimates are mainly used in the application of pOlicies with significant impact on
balances included in the financial statements and which are disclosed under the following notes
Fixed assets
Investment Property
Financial instruments
Provisions
3 Significant accounting policies
The Company applies the following policies consistently and it is consistent with that applied in aU the financial years disclosed in these consolidated financial statements
3middot1 Foreign currencies translation
Transactions in foreign currencies are initially recorded using the exchanqe rate nrolinn on the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are retranslated the rates riiinn at the balance sheet date All differences are recoQnized in the statement of income
Nonmonetary items that are measured at historical cost in foreign currencies are translated using the rates prevailing at the date of the initial
3middot2 Fixed assets and its deprecation
a The first recognition and initial measurement
Fixed assets are stated at the historical cost after deducting accumulated rionrpltiM and accumulated impairment losses
b Subsequent Cost
Such cost includes the cost of replaCing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied aU other repair and maintenance costs are recoQnized in the statement of profit or loss as incurred
c Depreciation
Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The amount is carried on the income statement according to the method the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates
Asset Depreciation
Rate
Building facilities and decoration 5
Computers 50
Other assets 25
11 of 24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic
Consolidated Statement of Cash Flows Notes
Cash flows from operating activities
Net profit before income tax
Adjustments to reconcile net profit to cash flows
From operating activities
Fixed assets depreciation (4)
Investment Property depreciation (5)
Gainloss from Investments in associated companies (7) Retained earnings adjustments Provisions no longer required (15) Provision (15)
Gains(Ioss) from investments at fair value through profit and (12)
loss
Finance expenses
Capital Gain
(Ioss)gain foreign currency exchange
Credit interest
3132020 EGP
139894432
5250951
112287
1400484 1642417 (124953)
2021490
11 991 655
22206
(687809) (804518)
3132019 EGP
184746470
2501 088
114244
(8802929)
243454
(1 901 710)
7097409
3513956 (1 510727)
Net operating income 160718642 186001255
Change in inventory (8) (212 265 287) (227 540 237)
Change in Receivables and notes receivables (9) (129820271) (166248332) Change in due from related parties (10middot1) 1 095907 702405
Change in Advance to suppliers 20473408 (27947820) Change in Debtors and other debit balances (11) 13197877 (24594693) Change in Suppliers and Notes payable (16) 76888 145 444165457
Change in Due to related parties (10-2) (6531238) (12544776) Change in Advance accounts Receivables (32824718) 29307216 Change in Creditors and other credit balances (17) 17910172 (13631 761) Cash flows (used in) 1provided by operating activities (91 157363) 187668714
Paid Income Tax
Used in provisions
Paid Debit Interest
(18) (17 421 362)
(11 991 655)
(11115702)
(537965)
(7097409)
Net Cash flow (used in)1 provided by operating activities (120570380) 168917638
Cash flows from investment activities
(Payments) for purchase of fixed assets and projects under
construction
(4) (6) (8465305) (3641 529)
(Payments) for associated company (7) (6589774) (17500000)
(Payments) for investment in subsidiaries(net after cash
balance) (2272 113) (18563020)
Proceeds from credit interest 804518 1510727
Foreign currency exchange 687809 (3513956)
Proceeds from Investments at fair value through profit and loss (1 697430) (441 750)
Net cash flows (used in) by investment activities (17 532 295) (42149528)
Cash flows from financing activities
Change in bank over draft 113093640 (59815728)
Net cash flows provided by(used in financing activities 113093640 (59815728)
Net change in cash and cash equivalents during the year (25009035) 66952382
Cash and cash equivalents at the beginning of the year 149381 124 98040434 Cash and cash equivalents at the end of the year (13) 124372089 164992816
Financial Manager
OsamaF~l _
O~~-(JPage8of24
Chairman
Khaled Gamal Mohamed Mahmoud
~~~L
MM Group for Industry and International Trade (5 rlorl 31
Notes to the consolidated financial statements
1 About The company
A Companys background
MM Group for Industry and International Trade (SAE) is established under the Law No159 of 1981 and its executive regulations and considering the provisions of law No 95 of 1992 and its executive regulations and has been reaistered in the commercial reaister under No609 10 of Ramadan city on January 3 1996
Based on a Extraordinary general assembly held on April 5 2016 the decree of the general authority for investment and free zones no 6382 year 2016 which decided to the company into shy
bull MM Group company for the industry and international ( The Splitter) bull MTI company for real estate investment (SAE) (The Spfitted)
And use the date of the of the company at book value on the Companys financial statements at December 31 2015 as a basis to assess the assets and liabilities of the company for the purpose of solit and it was registered in the comercial reaister on december 29 2016
6th - According to the as of 2017 that agree to make an Initial public offering of 30of the shares of MM Group for industry and international trade company (SAE) in the Egyptian stock market on april 11 2017
B Companys Purpose
Producing and assembling vehicles agricultural tractors and related equipment heavy and light means of transportation and performing engine overhauls (b) maintenance installation and repairs through spl3cii3lized service (c) trading of cars agricultural tractors and related equipment loaders all heavy and light means of transportation including required spare parts maintenance and other related activities
and cladding pipes which is by the company
producing the required production supplies to serve the Companys purposes
all goods and products authorized for import in accordance to the Law
utilizing Egyptian commercial agencies for trading in electronic devices related to remote sensing and providing Advance technical and technological trading of telecommunication devices and mobile phones and the maintenance and reoair there of through soecialized service centres
the sale and of real estate properties land and movable assets to serve the Companys purposes (except for areas mentioned in the Ministerial Decree No 12 of Law No 94 of 2005 as well as the Sinai Peninsula and Shalateen which requires a prior approval from GAFls chairman)
assembling and manufactUring split air conditioners and mobile in one of the new industrial areas
oVMrfiM all goods and products authorized for export in accordance to the Law
Selling all goods and products mentioned as a part of the companys purpose including HhiI agricultural fork lift and loader
Sale of mobile lines and mobile recharge cards
Sale of electrical and non-electrical household appliances
The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in Egypt or abroad The Company may also merge with purchase or such according to the Drovisions of the Law and its Executive
Page 9 of 24
MM Group for Industry and International Trade (SAE) ended March 2020
1 About The company (continued)
C Companys location
- The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo
D Companys Duration
the fiscal year for the company begins on the 1s1 of January and ends on December of each year
- The duration is twenty-five years from the date of in the commercial
E Approval of the financial statements
- The consolidated financial statements of the Company for the period ended 31 March 2020 were authorized for issuance in accordance with a decree ofthe board of directors held on June 9 2020
2 Basis for preparation of financial statements
A Basis of consolidation
-The consolidated financial statements are prepared by consolidating the financial statements of the Holding Company and its subsidiaries through collecting similar items of assets liabilities equity revenues and expenses
-The investment cost borne the holding company in its subsidiaries was eliminated along with the holding companys share in the equity of each subsidiary
- Unrealized intercompany transactions are eliminated
- Non-controllable interest in net equity and in net profit of subsidiaries controlled by the company are included in the equity in the consolidated financial statements under an clause non-controlling interests and are calculated as eaual to their share in the carrying value of the net assets of the
-The acquisition cost was distributed as follows-
The fair value of assets and liabilities owned at the date of acquisition and within the limits of the share of the parent company that was acquired on that date
- The additional acquisition cost over the share of the parent companys share in the capital of the subsidiary companies is recognized as goodwill
Scope of consolidated financial statements
The consolidated financial statements include the companies in which the company contributes more than 50 of its capital and it has control over it and companies with less than 50 contribution The company has the ability to control the companys decisions The following are the companies listed in the consolidated financial statements
Investment
MM for Export amp Import 99
Qanawat for trading and distribution company 7048
Mediterranean industrial company 9910
B Commitment to accounting standards and laws
These financial statements were in accordance with CUVULIGII Accounting Standards and prevailing
laws and regulations
C Disclosure and presentation currency
The financial statements are presented in Pound which is the Companys functional currency
Page 10 of 24
MM Group for Industry and International period ended Consolidated financial statements for
2 Basis for preparation of financial statements (continued)
D Use of estimates and
The preparation of the consolidated financial statements are in-accordance with the Egyptian Accounting Standards
requiring to make estimates and that affect assets and liabilities revenues and expenses
during the financial period
Actual results may differ from these estimates The estimates and assumptions are reviewed on-going basis and
the effects ofthe modification of the accounting estimates in the period in which estimates are revised
and estimates are mainly used in the application of pOlicies with significant impact on
balances included in the financial statements and which are disclosed under the following notes
Fixed assets
Investment Property
Financial instruments
Provisions
3 Significant accounting policies
The Company applies the following policies consistently and it is consistent with that applied in aU the financial years disclosed in these consolidated financial statements
3middot1 Foreign currencies translation
Transactions in foreign currencies are initially recorded using the exchanqe rate nrolinn on the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are retranslated the rates riiinn at the balance sheet date All differences are recoQnized in the statement of income
Nonmonetary items that are measured at historical cost in foreign currencies are translated using the rates prevailing at the date of the initial
3middot2 Fixed assets and its deprecation
a The first recognition and initial measurement
Fixed assets are stated at the historical cost after deducting accumulated rionrpltiM and accumulated impairment losses
b Subsequent Cost
Such cost includes the cost of replaCing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied aU other repair and maintenance costs are recoQnized in the statement of profit or loss as incurred
c Depreciation
Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The amount is carried on the income statement according to the method the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates
Asset Depreciation
Rate
Building facilities and decoration 5
Computers 50
Other assets 25
11 of 24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (5 rlorl 31
Notes to the consolidated financial statements
1 About The company
A Companys background
MM Group for Industry and International Trade (SAE) is established under the Law No159 of 1981 and its executive regulations and considering the provisions of law No 95 of 1992 and its executive regulations and has been reaistered in the commercial reaister under No609 10 of Ramadan city on January 3 1996
Based on a Extraordinary general assembly held on April 5 2016 the decree of the general authority for investment and free zones no 6382 year 2016 which decided to the company into shy
bull MM Group company for the industry and international ( The Splitter) bull MTI company for real estate investment (SAE) (The Spfitted)
And use the date of the of the company at book value on the Companys financial statements at December 31 2015 as a basis to assess the assets and liabilities of the company for the purpose of solit and it was registered in the comercial reaister on december 29 2016
6th - According to the as of 2017 that agree to make an Initial public offering of 30of the shares of MM Group for industry and international trade company (SAE) in the Egyptian stock market on april 11 2017
B Companys Purpose
Producing and assembling vehicles agricultural tractors and related equipment heavy and light means of transportation and performing engine overhauls (b) maintenance installation and repairs through spl3cii3lized service (c) trading of cars agricultural tractors and related equipment loaders all heavy and light means of transportation including required spare parts maintenance and other related activities
and cladding pipes which is by the company
producing the required production supplies to serve the Companys purposes
all goods and products authorized for import in accordance to the Law
utilizing Egyptian commercial agencies for trading in electronic devices related to remote sensing and providing Advance technical and technological trading of telecommunication devices and mobile phones and the maintenance and reoair there of through soecialized service centres
the sale and of real estate properties land and movable assets to serve the Companys purposes (except for areas mentioned in the Ministerial Decree No 12 of Law No 94 of 2005 as well as the Sinai Peninsula and Shalateen which requires a prior approval from GAFls chairman)
assembling and manufactUring split air conditioners and mobile in one of the new industrial areas
oVMrfiM all goods and products authorized for export in accordance to the Law
Selling all goods and products mentioned as a part of the companys purpose including HhiI agricultural fork lift and loader
Sale of mobile lines and mobile recharge cards
Sale of electrical and non-electrical household appliances
The may have an interest in or participate with or others that perform similar activities and which may further the achievement of its objectives in Egypt or abroad The Company may also merge with purchase or such according to the Drovisions of the Law and its Executive
Page 9 of 24
MM Group for Industry and International Trade (SAE) ended March 2020
1 About The company (continued)
C Companys location
- The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo
D Companys Duration
the fiscal year for the company begins on the 1s1 of January and ends on December of each year
- The duration is twenty-five years from the date of in the commercial
E Approval of the financial statements
- The consolidated financial statements of the Company for the period ended 31 March 2020 were authorized for issuance in accordance with a decree ofthe board of directors held on June 9 2020
2 Basis for preparation of financial statements
A Basis of consolidation
-The consolidated financial statements are prepared by consolidating the financial statements of the Holding Company and its subsidiaries through collecting similar items of assets liabilities equity revenues and expenses
-The investment cost borne the holding company in its subsidiaries was eliminated along with the holding companys share in the equity of each subsidiary
- Unrealized intercompany transactions are eliminated
- Non-controllable interest in net equity and in net profit of subsidiaries controlled by the company are included in the equity in the consolidated financial statements under an clause non-controlling interests and are calculated as eaual to their share in the carrying value of the net assets of the
-The acquisition cost was distributed as follows-
The fair value of assets and liabilities owned at the date of acquisition and within the limits of the share of the parent company that was acquired on that date
- The additional acquisition cost over the share of the parent companys share in the capital of the subsidiary companies is recognized as goodwill
Scope of consolidated financial statements
The consolidated financial statements include the companies in which the company contributes more than 50 of its capital and it has control over it and companies with less than 50 contribution The company has the ability to control the companys decisions The following are the companies listed in the consolidated financial statements
Investment
MM for Export amp Import 99
Qanawat for trading and distribution company 7048
Mediterranean industrial company 9910
B Commitment to accounting standards and laws
These financial statements were in accordance with CUVULIGII Accounting Standards and prevailing
laws and regulations
C Disclosure and presentation currency
The financial statements are presented in Pound which is the Companys functional currency
Page 10 of 24
MM Group for Industry and International period ended Consolidated financial statements for
2 Basis for preparation of financial statements (continued)
D Use of estimates and
The preparation of the consolidated financial statements are in-accordance with the Egyptian Accounting Standards
requiring to make estimates and that affect assets and liabilities revenues and expenses
during the financial period
Actual results may differ from these estimates The estimates and assumptions are reviewed on-going basis and
the effects ofthe modification of the accounting estimates in the period in which estimates are revised
and estimates are mainly used in the application of pOlicies with significant impact on
balances included in the financial statements and which are disclosed under the following notes
Fixed assets
Investment Property
Financial instruments
Provisions
3 Significant accounting policies
The Company applies the following policies consistently and it is consistent with that applied in aU the financial years disclosed in these consolidated financial statements
3middot1 Foreign currencies translation
Transactions in foreign currencies are initially recorded using the exchanqe rate nrolinn on the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are retranslated the rates riiinn at the balance sheet date All differences are recoQnized in the statement of income
Nonmonetary items that are measured at historical cost in foreign currencies are translated using the rates prevailing at the date of the initial
3middot2 Fixed assets and its deprecation
a The first recognition and initial measurement
Fixed assets are stated at the historical cost after deducting accumulated rionrpltiM and accumulated impairment losses
b Subsequent Cost
Such cost includes the cost of replaCing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied aU other repair and maintenance costs are recoQnized in the statement of profit or loss as incurred
c Depreciation
Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The amount is carried on the income statement according to the method the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates
Asset Depreciation
Rate
Building facilities and decoration 5
Computers 50
Other assets 25
11 of 24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (SAE) ended March 2020
1 About The company (continued)
C Companys location
- The companys main residance and legal location is in the 10th of Ramadan City The Head Quarter of the company is in 18 EI Obour - Buildings Salah Salem Cairo
D Companys Duration
the fiscal year for the company begins on the 1s1 of January and ends on December of each year
- The duration is twenty-five years from the date of in the commercial
E Approval of the financial statements
- The consolidated financial statements of the Company for the period ended 31 March 2020 were authorized for issuance in accordance with a decree ofthe board of directors held on June 9 2020
2 Basis for preparation of financial statements
A Basis of consolidation
-The consolidated financial statements are prepared by consolidating the financial statements of the Holding Company and its subsidiaries through collecting similar items of assets liabilities equity revenues and expenses
-The investment cost borne the holding company in its subsidiaries was eliminated along with the holding companys share in the equity of each subsidiary
- Unrealized intercompany transactions are eliminated
- Non-controllable interest in net equity and in net profit of subsidiaries controlled by the company are included in the equity in the consolidated financial statements under an clause non-controlling interests and are calculated as eaual to their share in the carrying value of the net assets of the
-The acquisition cost was distributed as follows-
The fair value of assets and liabilities owned at the date of acquisition and within the limits of the share of the parent company that was acquired on that date
- The additional acquisition cost over the share of the parent companys share in the capital of the subsidiary companies is recognized as goodwill
Scope of consolidated financial statements
The consolidated financial statements include the companies in which the company contributes more than 50 of its capital and it has control over it and companies with less than 50 contribution The company has the ability to control the companys decisions The following are the companies listed in the consolidated financial statements
Investment
MM for Export amp Import 99
Qanawat for trading and distribution company 7048
Mediterranean industrial company 9910
B Commitment to accounting standards and laws
These financial statements were in accordance with CUVULIGII Accounting Standards and prevailing
laws and regulations
C Disclosure and presentation currency
The financial statements are presented in Pound which is the Companys functional currency
Page 10 of 24
MM Group for Industry and International period ended Consolidated financial statements for
2 Basis for preparation of financial statements (continued)
D Use of estimates and
The preparation of the consolidated financial statements are in-accordance with the Egyptian Accounting Standards
requiring to make estimates and that affect assets and liabilities revenues and expenses
during the financial period
Actual results may differ from these estimates The estimates and assumptions are reviewed on-going basis and
the effects ofthe modification of the accounting estimates in the period in which estimates are revised
and estimates are mainly used in the application of pOlicies with significant impact on
balances included in the financial statements and which are disclosed under the following notes
Fixed assets
Investment Property
Financial instruments
Provisions
3 Significant accounting policies
The Company applies the following policies consistently and it is consistent with that applied in aU the financial years disclosed in these consolidated financial statements
3middot1 Foreign currencies translation
Transactions in foreign currencies are initially recorded using the exchanqe rate nrolinn on the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are retranslated the rates riiinn at the balance sheet date All differences are recoQnized in the statement of income
Nonmonetary items that are measured at historical cost in foreign currencies are translated using the rates prevailing at the date of the initial
3middot2 Fixed assets and its deprecation
a The first recognition and initial measurement
Fixed assets are stated at the historical cost after deducting accumulated rionrpltiM and accumulated impairment losses
b Subsequent Cost
Such cost includes the cost of replaCing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied aU other repair and maintenance costs are recoQnized in the statement of profit or loss as incurred
c Depreciation
Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The amount is carried on the income statement according to the method the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates
Asset Depreciation
Rate
Building facilities and decoration 5
Computers 50
Other assets 25
11 of 24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International period ended Consolidated financial statements for
2 Basis for preparation of financial statements (continued)
D Use of estimates and
The preparation of the consolidated financial statements are in-accordance with the Egyptian Accounting Standards
requiring to make estimates and that affect assets and liabilities revenues and expenses
during the financial period
Actual results may differ from these estimates The estimates and assumptions are reviewed on-going basis and
the effects ofthe modification of the accounting estimates in the period in which estimates are revised
and estimates are mainly used in the application of pOlicies with significant impact on
balances included in the financial statements and which are disclosed under the following notes
Fixed assets
Investment Property
Financial instruments
Provisions
3 Significant accounting policies
The Company applies the following policies consistently and it is consistent with that applied in aU the financial years disclosed in these consolidated financial statements
3middot1 Foreign currencies translation
Transactions in foreign currencies are initially recorded using the exchanqe rate nrolinn on the date of the transaction
Monetary assets and liabilities denominated in foreign currencies are retranslated the rates riiinn at the balance sheet date All differences are recoQnized in the statement of income
Nonmonetary items that are measured at historical cost in foreign currencies are translated using the rates prevailing at the date of the initial
3middot2 Fixed assets and its deprecation
a The first recognition and initial measurement
Fixed assets are stated at the historical cost after deducting accumulated rionrpltiM and accumulated impairment losses
b Subsequent Cost
Such cost includes the cost of replaCing part of the fixed assets when that cost is incurred if the recognition criteria are met Likewise when major improvements are performed its cost is recognized in the carrying amount of the fixed assets as a replacement if the recognition criteria are satisfied aU other repair and maintenance costs are recoQnized in the statement of profit or loss as incurred
c Depreciation
Depreciation is determined based on the fixed assets less salvage value as residual value at the end of estimated useful life The Salvage value of asset is the net amount currently expected to be obtained as a result of Disposal if it is in the expected condition at the end of its useful life The amount is carried on the income statement according to the method the useful life estimated to each kind of fixed assets except land that not depreciated the depreciation of fixed assets are depreciated according to the following rates
Asset Depreciation
Rate
Building facilities and decoration 5
Computers 50
Other assets 25
11 of 24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (SAE) the
3 Significant accounting policies (continued)
3-3 Investment property
The Investment are the real estate values that have been obtained for the purpose of resale or for rent or both and are not for sale within the normal of the company The initial record of these investments are done using the cost method - the acquisition cost - or at the date of to be re-measured by removing the impairment of those investments at the end of the financial period taking into account the active market conditions of these properties with the included in the recoverable amount of the acquisition cost of these investments in the income statement In the event of a rise in its recoverable amount it is added to the same item and within the limits already recognized on the income statements previous financial periods and do not include any of these real estate investments and held either only for the purpose of the subsequent act in the near future or for development or resale within the normal activity of the company
The real estate investments are recorded at historical cost net of accumulated depreciation and impairment if any and are depreciated using straight line method and according to estimated useful life of each asset in accordance with the following
Asset Useful life
Building (Commercial renovation and decoration) 20 years
3middot4 Projects under construction
The cost of the purchase construction and installation of fixed assets are recorded under this item until those assets are ready for use after which those amounts are transferred to fixed assets
3middot5 Investments in associates
An associate is an entity over which the Group has Significant influence that is not control or joint control influence exists where the Company holds voting rights of 20 to 50 in an entity
AcqWSlrH)ns of Associates are accounted for using the purchase method goodwill on acquisition of an associate if any is not but is rather included within the carrying amount of the investment Investments in associates are accounted for subsequently in the consolidated financial statements using the equity method
According to the equity method an investment in an associate is initially in the statement of financial position at cost and is subsequently adjusted to the Groups share in profit or loss and other changes in the net assets of the associate
3middot6 Investments available for sale
These assets are initially measured at fair value plus any directly attributable transaction costs Subsequent to initial recognition they are measured at fair value and changes other than impairment losses and foreign currency differences on debt instruments are recognized in other comprehensive Income and accumulated in the fair value reserve When these assets are de-recognized the accumulated gain or losses in equity is reclassified as profit or losses if the Company cannot define at fair value it can be stated at cost less impairment
3middot7 Investments at fair value through profit and loss
This category includes financial assets held for trading A financial instrument is classified as an instrument held for trading if it is primarily for the purpose of the sale in the short term or if it represents a part of a portfolio of specific financial instruments that are managed tthr
and there is evidence of recent actual transactions that resulted in short-term profit taking instrument
Page 12 of24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
3-10
MM Group for Industry and International ttornont for
3 Significant accounting (continued)
3-8 Inventory
A Agricultural tractors Telecommunications
The inventory is stated at the lower of cost or net realizable value The cost of inventory is based on first-in firstshyout principal
B Automotive
Inventory is evaluated and the sold units are priced at the actual cost till the end of the sales transaction where a cost center for each unit is made
C Consumer Electronics
The raw material inventories are stated at the lower of the cost or net realizable value The cost of raw material is based on the weighted average method
3middot9 Revenue
bull Sales revenue
Revenue from the sale of goods is measured at the fair value of the consideration received or net of returns and allowances trade discounts and volume discounts Revenue is recognized when the significant risks and rewards of ownership have been transferred to the buyer and in the presence of sufficient expectation for the flow of economic benefits with the sales transaction and when the company doesnt have the right for continuous managerial control over the when the buyer receives them and in case of exportation the risks and rewards of the ownership of the goods are transferred to the freight conditions where revenues are usually ronirI when the goods are exportation
bull Credit interest
Credit interest revenues are on the basis of time ratio taking into consideration the rate of retum on the original value
in value of assets
1) Financial assets
A financial asset is considered to be impaired if evidence indicates that one or more events have had a negative effect on the estimated future cash flows of that asset An impairment loss in respect of an available-for-sale financial asset is calculated by reference to its current fair value Individually financial assets are tested for impairment on an individual basis all impairment losses are in income statement Impairment losses are reversed in the income statement when there is evidence recover of the impairment losses
2) Non-financial assets
The non-financial assets other than Assets arising from construction contracts and inventories are reviewed to determine whether there is any indication of impairment if any such indication exists then the assets recoverable amount is estimated An impairment loss is if the amount of an asset or its cash-generating unit exceeds its recoverable amount A cash-generating unit smallest identifiabie asset group that generates cash flows that largely are independent from other assets and groups Impairment losses are recognized in the income statement The recoverable amount of an asset or cash-generating unit is the of its value in use and its fair value less its selling costs In value in use the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset An loss is reversed if there has been a change in the estimates used to determine the recoverable amount An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying amount that would have been determined net of depreciation or amortization if no impairment loss had been ranar1
Page 13 of24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
79 of in 1975 as ltInonrlorl
MM Group for Industry and International Trade (SA Consolidated financial statements for the oeriod ended 31 March 2020
3 Significant accounting policies (continued)
3-11 Provisions
A provision is recognized when the has legal or constructive as a result of past events and it is probable that an outflow of will be to these obligations with the ability to make reliable estimate for these obligations Provisions are reviewed at the date of preparing the financial statements and adjusted when necessary to show its best estimate
3-12 Taxes
A Income Tax
Income tax is a tax on the Companys profit and is calculated according to the relevant laws regulations and instructions that are currently implemented in this while using the prevailing income tax at the date of preparing the balance sheet The tax on income should be reflected in the income statement
B Deferred taxes
Deferred tax occurs to reflect the existence of some temporary differences due to the difference in time frames when the current value of assets and liabilities are recognized between the prevailing taxation principles and accounting principles that are adhered to when preparing the financial statements The deferred tax is determined according to the prevailing method used to settle the value of assets and liabilities It should be taken into account that the deferred tax considered an asset of the company if there is a possibility that it may be used to reduce the accrued tax profits of the company for future years and the amount of the deferred tax considered as an asset of the company is reduced by the amount that may not be off-set aaainst future taxes
3-13 Receivables notes receivable debtors and other debit balance and advances to suppliers
Receivables note receivable debtors and other debit balance and advances to suppliers are recorded by face value net of impairment
3-14 Related Parties Transactions
Transactions with related are recorded in the same way as in normal course of business according to the conditions stated by the ltgtnnt and on the same basis as transactions with others
3-15 LeClal reserve
According to the articles of the company shall transfer 5 of the yearly net profit to the reserves account in the shareholders equity up to when the legal reserve balance is equal to 50 of the
companys paid up capital in the event the said reserve falls below 50 transfer is resumed
3-16 Employees Benefits
The company is its share in the social insurance funds according to the Social Insurance Act No and is recoanized as wage and expense in the income statement according to
the accrual basis
3-17 The Contingent Liabilities and Commitments
Contingent liabilities and commitments of which the company is part of as well as out off-balance sheet do not represent actual assets or liabilities at the date of financial statements
3-18 Dividends
Dividends are recognized as an obligation in the period which the declarations of distributions are made
14 of 24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (SAE)
3 accounting (continued)
3-19 Cash Flow Statement
The cash flow statement is according to the indirect method
3-20 Cash and cash equivalent
3-21
For Purpose of the cash flow statement Cash and cash tlUUJVClltll
and time deposits less than three month
Comparative
include cash on hand and at banks
The figures are reclassified when necessary to comply with current figures
3-22 per share
per share is calculated by dividing the profits by the number of ordinary shares of the company by the weighted average of the number of shares during the year
3-23 Capital mlnlllAmAnt
The Board of Directors policy is to maintain a capital base to maintain investors creditors and market confidence and to sustain future development of the business
The board of directors aims to make a balance between the interest rates which can be attained with the high rates of borrowings and the benefits amp received guarantees through maintain a healthy capital structure
3-24 Fair value of financial instruments
The financial instruments is represented in the companys financial assets and liabilities and the financial assets include the account receivables notes receivables and other debt balances and cash on hand and at bank also the financial liabilities include customers Advance payments contractors accounts and notes oavable and other credit balances According to the basis of evaluation followed in evaluating the companys assets and liabilities which is present in the disclosure footnotes of the financial statements the fair value of the financial instruments dont differ
il1llifiti from its book value at the date of the oreoaration of the financial statements
3middot25 Financial instruments and risk management related
The financial instruments are balances of bank accounts cash on hand and at banks Receivables amp Notes Debtors amp other debit balances suppliers creditors and other credit balances The following are the most significant risks related to the financial instruments and the procedures taken the company to minimize the effect of such risks
1) Credit risk
This risk is represented in the disability of clients to pay their outstanding liabilities this risk is considered limited as the cllents have a solid credit history
2) Liquidity risk
The liquidity risk is charectarized by factors that impact the repayment of part or all of the commitments According to the policy the suitable policies are taken to decrease the level of minimum
3) Interest rate risk
Interest rate risk is in the in value of financial instrument due to the fluctuation of the market interest rates This risk is considered based on the companys on financing needed for operations
4) Foreign currency risk
The foreign is the fluctuation of currency rates since that affect the companys receivables and currency also asset and liability evaluation in foreign Also as it is in note (31) the and liabilities in foreign currency are evaluated using the rate in the date of financial statements
Page 15 of 24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
Irlyustry dl
4- Fixed Assets
Leasehol
Furniture dmarch 31 202Jl
and equipment and office Elevators and air
Land constructions and Devices Vehicles devices conditioners Decorations ments Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in Jan 1 2020 19058400 16164 432 24123090 20928457 18961509 17 845 327 1337860 26843910 7819124 159082709
Additions durina the period 898896 4693125 474544 570281 107007 220006 1363647 8321506
Additions of control on subsidiaries 13252603 4973347 21206 447239 64 058 18158453
of the period 295) 295)
Balance in March 31 19058400 29417035 29995333 25642788 19883292 18479666 7444867 21063916 186091313
Accumulated depreciation in Jan 1 2020 15833416 16153255 13405851 11 931 519 13865611 5614593 3310090 82585815
of the 57825 993340 1284017 933662 762691 304544 485623 429249 5250951
Additions of control on subsidiaries bullbull 6931008 4422316 21206 430576 64 058 11869164
088) (49
22822309 22168911 14111074 13295151 14692360 5919131 3855713 2191 641 99656902
19058400 6594126 1826422 10931114 6581535 3187306 1525730 23208203 6920435 86440471
This is of 3 220 243 LE which is the book value of fullv depreciated assets that are still in use
3132020
Vehicles
And Device 48133 1770042
Furniture and office device 14913 1 387155 3
The investment was reclassified in the subsidiaries to of 2475 shares of the investments in Mediterranean industrial company so that increase in the share from to 991 and so controllina the financial policies of the company
16 of 24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
for 11Iuustry and Imernallol -I the ended 31
4middot Fixed Assets
Furniture
and and office Elevators and air leasehold December 31 2019 land constructions and Devices Vehicles devices computers conditioners Decorations improvements Total
EGP EGP EGP EGP EGP EGP EGP EGP EGP EGP
Cost in January 12019 19058400 16164432 19990201 11999951 16618296 15231154 6981115 21115506 2686111 136441026
Additions during the year 4199271 3113606 2343213 2613573 356085 5128404 5133013 22881165
Disposals (66 (185100) (251 482)
Balance in December 31 2019 19058400 16164432 24123090 20928451 18961 509 17 845 321 7331860 26843910 159082709
Accumulated depreciation in January 1 2019 15025254 14984691 11538361 9800855 11929210 5088152 2092551 71435541
808222 1834457 1 998124 2130664 1 936401 526441 1277539 835019Depreciation of the year 11346867
Accumulated depreciation of disposals (65899) (130634) (196533)
Accumulated depreciation in December 312019 15833416 16153255 13405851 11 931519 13865611 5614593 3370090
Net book value in December 312019 19058400 330956 1369835 7522606 7029990 3979716 1123267 23413820
This figure is of 3 134 979 LE which is the book value of nonrofbtcn assets that are still in use
31122019
eqUipment And Device 48133 Vehicles 1 748836 Furniture and office device 14913 Computers 1 323097
3134979
82585815
76496834
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for oeriod ended 31 March 2020
5- Investment property
EI Mohandeseen EIObour
Showroom Showroom Total
Cost in January 1 2020 9400498 9400499
112287 112287
55612406 31140000 86752406
6shy under construction
3132020 31122019 EGP EGP
101n of Ramadan Buildings 966143 828344
1368423 1230624
7- Investments in associates
Investment
Percentage
alma shanre company for industrial trade 31
Tamweel for General Trade 5000
ledilerranean industrial company
ilodem technology services company 35
Ebtekar for financial investment company 4990
IPE Capital limited company 4310
Application amp Systems 146
levelopment company
3132020
EGP 279346
4827599
9737213
373609978
14000000
1 601189
404055325
Control of
Subsidiaries
adjustments
EGP 222764
(2404966)
Additions
during the
year
EGP
5001775
1 587999
6589774
Gains (Ioss)
for the year
EGP 56582
(174176)
76291
(1 370805)
11624
311212019
EGP
2404966
9660922
374980783
14000 000
The company did not start its activity and has not yet issued financial statement The investment was reclassified in the subsidiaries according to purchase of 2 475 shares of the investments in
Mediterranean industrial company for trading and distribution so that increase in the share from 496 to 9910 and so controlling the financial policies of the company
8shy Inventory
for sale
Parts
Goods in transit
3132020
EGP
794744066
32836231
502020603
311212019
EGP
792446222
31769677
293119714
1 329600 900 1117 335 613
Impairment of inventory (16 029 944) (16 029 944)
1313570 956 1101305669
180f24
1566
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
for Industry and International Trade
9middot Receivables amp Notes Receivables
Accounts Receivables
Notes Receivable
Notes receivable under collection
3132020
EGP
471083952
152214723
31500354
31122019
EGP
419497147
78083893
27397718
654799029 524978758
of receivables amp notes receivables (17570016) (17570016)
637229013 507408742
10- Related Parties Transactions
1) Due from related parties
31312020 31122019
EGP EGP
Mediterranean industrial company 1095907
Modern technology services company 3184050 3184050
3184050 4279957
2) Due to related parties
MTI for Real Estate Investment
Shareholders credit balances
BPE Caoitallimited company
3132020
EGP
95649599
4366369
10000000
31122019
EGP
101 570701
4976505
10000000
190f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the Deriod ended March 2020
11middot Debtors and other debit balances
3132020 311122019
EGP EGP
Staff loan 4963178 5131484
Withholding tax 59157524 61 353121
Vodafone company 22372 570 29243876
Tax Authority VAT 45526224 51 550 762
with others 4136 065 3371765
Custom authority 1221 546 1 437033
Prepaid expenses 22581640 20963293
Other debit balances 31651 753 31 757043
Impairment in debtors and other debit balances (27275) (27275)
191583225 204781102
12- Investments at fair value through profit and loss
Investments in portfolios managed by others
3132020
EGP
49887412
49887412
31122019
EGP
50211472
50211472
13shy Cash on hand and at banks
31312020
EGP
31122019
EGP
Current Account
Time Deposits
Cash on Hand
102470096
609066
124372 089
138701 435
453928
149381 124 _ - - -
14middot Issued and Paid-up Capital
- The authorized capital of the company was determined to be 100 000 000 LE and the issued was determined on the date of establishment to be 21 000000 distributed over 210000 shares at a par value of 100 LE and a paid-up capital of 5250000 LE and has been registered in the commercial register on January 3 1996
- According to the decision of the extraordinary held on April 30 1997 the amount of the authorized capital was increased from 100 000 000 LE to 150 000 000 LE and the issued and fully paidshyup-capital amounted to 36 900 000 LE distributed over 369 000 shares at a par value of 100 LE per share and has been registered in the commercial on August 141997
- According to the decision of the extraordinary general assembly held on July 10 2003 the par value of the share was split from 100 LE per share to 10 LE per share in a paid up capital of 36900000 distributed on 3 690 000 shares at a par value of LE 10 per share
According to the decision of the board of directors meeting held on May 18 2006 the issued and paid up capital was increased from 36 900 000 LE to LE 60 000 000 distributed over 6 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 555 on May 29 2006
200f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
on December
MM Group for Industry and International Trade (SA ended
14middotlssued and paid~up (continued)
- According to the decision of the board of directors held on March 3 2007 the issued and paid up was increase from 60 000 000 LE to 90 000 000 LE distributed over 9 000 000 shares at a par value of 10 LE per share and has been registered in the commercial register no 531 on April 22 2007
to the decision of the board of directors held on December 10 2007 the issued and up capital was increased from 90 000 000 LE to 000 000 LE distributed over 12 000 000
at a par value of 10 LE per share and has been reaistered in the commercial reaister no 1767
According to the decision of the board of directors meeting held on December 13 2008 the issued and paid up was increased from 150 000 000 LE to 500 000 000 LE and has been reaistered in the commercial reaister no 627 on Aoril21 2008
The company then increased its issued and paid capital from 120000 000 LE to 180 000 000 LE and has been registered in the commercial no 1887 on December 21 2008
According to the decision of the board of directors held on May 12 2010 the issued and paid up capital was increased from 180 000 000 LE to 198000000 LE million distributed over 19800000 shares with a par value of LE1 a per share and has been registered in the commercial reaister no 1167 on May 252010
According to the decision of the extraordinary assembly held on September 272014 the issued and paid up was increased from 198 000 000 LE to 264 000 000 LE deducted from the general reserve amounted to 66 000 000 LE which was distributed over 26 400 000 shares with a par value of 10 LE per share and has been registered in the commercial on March 162015
to the decision of the extraordinary general held on June 18 2015 the issued and paid up capital was increased from 264 000 000 LE to 396 000 000 LE deducted from the reserve using a total of 132 000 000 LE which was ultimately distributed over 39 600 000 shares at a par value of 10 LE per share and has been registered in the commercial reaister on October 252015
According to the decision of the extraordinary assembly held on April 42016 the company split the par value of shares from 10 LE per share to 1 LE per share distributed over 369000000 shares at a par value of 1 LE per and increase the authorized capital form 500 000 000 LE to 1 000 000 000 LE and has been reaistered in the commercial register on June 92016
According to the decision of the extraordinary general held on 24 October 2016 the valuation report was approved for issuance to GAFI in order to split the company into two Consolidated MM Group for Industry and Intemational Trade (splitting) and MTI for Real Estate Investment (splitter) with an issued capital of 245 520 000 LE distributed over 396 000 000 shares at a par value of 62 LE and has been reoistered in the commercial reoister on December 292016
According to the decision of the extraordinary general assembly held on May 2018 the issued and paid up capital was increased from 245 520 000 LE to 306 900 000 LE from the Retained eamings
a 61 380 000 LE which was ultimately distributed across 495 000 000 shares at a par value of 062 LE per share and has been in the commercial on July 102018
According to the decision of the extraordinary general assembly held on April 15 2019 the issued and up capital was increased from 306900 000 LE to 383 625 000 LE from the Retained eamings
using a 76 725 000 LE which was ultimately distributed across 618750000 shares at a par value of 062 LE per share and has been registered in the commercial register on May 222019
210f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
15- Provisions
311312020 31122019
EGP EGP
Beginning Balance 29516539 28955382
29418444 29516539
16- Suppliers and Notes
31312020
EGP
31122019
EGP
Notes 584453013 505339171
17- Creditors and other credit balances
Tax authority
Ministry of Health - Takaful contribution for health insurance
Accrued l=rInltgtltgtltgt
Creditor of fixed assets purchased
Other credit balances
612849427 535961282
3132020 31122019
EGP EGP
18879941 7856629
24560543 21452994
2385866 1 494061
7772400 7772400
13215537 10328031
66814287 48904115
31132020 31122019
EGP EGP
78479670 28657593
33754343 137335383
(17421 362) (28 657593)
(1 673146)
(57 182567)
_ _ 94812651
for the period
Income tax expense
lmltgtnt for tax
Accrued revenue on advanced payments to tax authority
Tax in advance
19middot Net sales
Consumer and electronics activity
Telecommunication activity
Automotive activity
Tractors and
31132020 EGP
1438383875
330607884
454621576
9474270
3132019 EGP
2133443194
329192843
421 104808
12876130
2233087605 2896616975
Page 22 of 24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (SA Consolidated financial statements for the period ended March 2020
3132020 3132019
EGP EGP
Consumer electronics activity 1 330163430 1963229269
Telecommunication activity 303951293 310935014
Automotive activity 340158265 345627655
Tractors and pioes activity 7998297 9162248
1982271285
21- Sales amp distributions Expenses
31312020 3132019
EGP EGP
Salaries and Wages 33769800 28791217
Sales commission expenses 3709913 3556974
of fixed assets 3242642 1606598
Other Expenses 46444951 39838221
87167306
22- General amp Administrative Expenses
3132020 3132019 EGP EGP
Salaries and wages 2558046 2111513
Transportation Fees 229935 327679
Other I=VAnltgt 3 290 682 1452513
23- Earnings per share (EGP 1share)
3132020 3132019
EGP EGP
Net profit for the period 105921 669 135344230 Less
profit share 10062559 12857702 Board of director profit share
87331 051 111163326 495000000618750000
014 022
According to Suggestion of the Board of Directors for the purpose to Calculate per share
Page 23 of 24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
Page 240f24
MM Group for Industry and International Trade (SAE) Consolidated financial statements for the period ended 31 March 2020
Translation from Arabic 24middot Contingent Liabilities
The letters of guarantee issued at the companys request by commercial banks in Egypt in favor of third parties as of 31 December 2019
March 31 2020
EGP USD Euro
QNB ALAHLI 131 588300 25000
AI Ahli Bank Of Kuwait 21000
Ahli United Bank 81 750000 Attijariwafa Bank 1536900
214875200 21000 25000
25middot Tax Status
The company is subjected to law No 159 for year 1981 and its executive regulations the tax status of the company is as follows
1 Corporate Tax
- Corporate tax was inspected and settled till 31 December 2016
- The Company submits tax retums regularly in accordance with the legal cut-off dates
2 VAT tax
- VAT tax has been inspected and settled up to 2015The Company submits tax fillings regularly in accordance with the legal cut-off dates
3 Stamp Tax
Stamp duty tax has been inspected and settled up to 31 July 2006 and it has been inspected up to 31 December 2014 Currently preparing to inspect for the year 2015 through 2018
4 Withholding tax
Withholding tax was paid up to 31 March 2020 was inspected till 31 December 2017
5 Payroll Tax
- Payroll Tax was inspected and settled for the years 2005 through 2012 - Payroll tax was inspected for the years 2013 through 2016 -The Company submits monthly reconciliations in accordance with the legal cut-off dates
26- Subsequent event
The second half of march have witnessed the beginning of the impact of the outbreak of corona virus on the Egyptian market and the Egyptian government announced unprecedented measures to combat the virus infection and its spread The company has formed a risk committee to manage the crisis and the objectives of this period has been defined in maintaining all employees and securing them from corona risks as well as continuing the companys operations all risks were studied and evaluated and taken a serious of precautionary measures to reduce all risks on employees and to ensure the continuity of the supply chain (operational manufacturing sales and collection operations in this period and there is not effect on the companys current economic situation (its financial position business result and cash flow) And given to of the lack of clarity of the effects that could be caused by the development of the situation related to the effect of the spread of the virus (Covid-19) in the future the effects of development on the companys activity cannot be determined precisely at the present time
C~ Chief ~if~al Officer Financial Manager
K~~Gamal Mohamed ~~ --- = Mahmoud Khaled Hamdy S ~~d
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