ras al khaimah cement company p.s.c. ras a khaimah … and financial statement... · 2010-08-01 ·...
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RAS AL KHAIMAH CEMENT COMPANY – P.S.C.
RAS AL KHAIMAH
UNITED ARAB EMIRATES
CONDENSED INTERIM FINANCIAL
STATEMENTS AND REVIEW REPORT
FOR THE THREE-MONTH PERIOD ENDED
MARCH 31, 2010
RAS AL KHAIMAH CEMENT COMPANY – P.S.C.
RAS AL KHAIMAH
UNITED ARAB EMIRATES
Table of Contents
Page Exhibit
Report on Review of Condensed Interim Financial Information 1 --
Condensed Statement of Financial Position 2 A
Condensed Statement of Income 3 B
Condensed Statement of Comprehensive Income 4 C
Condensed Statement of Changes in Equity 5 D
Condensed Cash Flow Statement 6 E
Notes to the Condensed Interim Financial Statements 7 – 11 --
RAS AL KHAIMAH CEMENT COMPANY – P.S.C.
RAS AL KHAIMAH
UNITED ARAB EMIRATES
CONDENSED STATEMENT OF INCOME
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2010 (UNAUDITED)
EXHIBIT B
Three-month period ended
Notes March 31,
2010
March,31
2009
(Unaudited) (Unaudited)
AED AED
70,214,085 97,725,882 Sales (66,109,668) (66,256,999) Cost of sales ___________ __________ Gross profit 4,104,417 31,468,883 Other income 1,039,548 923,652 Marketing expenses (180,619) (234,128) Administrative expenses (3,371,679) (3,203,703) Finance costs (111,251) (171,821)
Share of profit of an associate 4 1,552,262 613,400 __________ ___________
Profit for the period – Exhibit C 3,032,678 29,396,283
__________ __________
Basic earnings per share 0.006 0.061 ========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF
THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
-3-
RAS AL KHAIMAH CEMENT COMPANY – P.S.C.
RAS AL KHAIMAH
UNITED ARAB EMIRATES
CONDENSED STATEMENT OF COMPREHENSIVE INCOME
FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2010 (UNAUDITED)
EXHIBIT C
Three-month period ended
March 31,
2010
March,31
2009
(Unaudited) (Unaudited)
AED AED
Profit for the period – Exhibit B 3,032,678 29,396,283
Other comprehensive income
Board of directors’ remuneration (2,160,000) (2,400,000)
__________ __________
TOTAL COMPREHENSIVE INCOME
FOR THE PERIOD – EXHIBIT D
872,678
26,996,283
========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF
THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
-4-
RAS AL KHAIMAH CEMENT COMPANY – P.S.C.
RAS AL KHAIMAH
UNITED ARAB EMIRATES
CONDENSED CASH FLOW STATEMENT
FOR THE PERIOD ENDED MARCH 31, 2010 (UNAUDITED) EXHIBIT E
March 31,
2010
March 31,
2009
(Unaudited) (Unaudited)
AED AED
Cash Flows from Operating Activities
Profit for the period – Exhibit B 3,032,678 29,396,283
Adjustments for:
Depreciation 6,703,936 5,546,569
Provision for capital spare parts 37,754 61,222
End of service benefits 420,836 83,944
Interest income (844,463) (874,298)
Profit on sale of property and equipment (25,223) --
Share of profit of an associate (1,552,262) (613,400)
Finance costs 3,371,679 171,821
Profit before working capital changes 11,144,935 33,772,141
Decrease / (increase) in inventories 3,226,119 (8,310,912)
Increase in due from an associate (5,924,798) --
(Increase) / decrease in trade and other receivables (12,801,039) 26,991,031
Increase / (decrease) in trade and other payables 5,687,527 (16,425,871)
Cash generated from operations 1,332,744 36,026,389
Finance costs paid (3,371,679) (171,821)
Net cash (used in)/provided by operating activities (2,038,935) 35,854,568
Cash Flows from Investing Activities
Purchase of property and equipment (364,298) (299,040)
Disposal of capital spare parts 42,893 62,036
Proceeds from sale of property and equipment 41,399 --
Investment in an associate -- (40,000,000)
Investment in project -- (750,000)
Interest income received 844,463 1,092,477
Net cash provided by/(used in) investing activities 564,457 (39,894,527)
Cash Flows from Investing Activities
Dividend paid -- (53,240,000)
Board of directors’ remuneration paid (2,160,000) (2,400,000)
Short term borrowings from bank 8,692,782 (18,292,215)
Net cash provided by / (used in) financing activities 6,532,782 (73,932,215)
Net Increase / (decrease) in cash and cash equivalents 5,058,304 (77,972,174)
Cash and cash equivalents at beginning of the period 91,742,847 94,279,209
__________ __________
CASH AND CASH EQUIVALENTS AT END OF THE
PERIOD – Note 7 & Exhibit A 96,801,151 16,307,035
========= =========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF
THESE CONDENCED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
-6-
RAS AL KHAIMAH CEMENT COMPANY – P.S.C.
RAS AL KHAIMAH
UNITED ARAB EMIRATES
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED MARCH 31, 2010 (UNAUDITED)
________________________________________________________________________________________
1. GENERAL INFORMATION:
Ras Al Khaimah Cement Company – P.S.C. (the “Company”) is a public
shareholding company incorporated in Ras Al Khaimah by Amiri Decree number 4 dated
May 27, 1995 issued by H.H. Sheikh Saqr Bin Mohammad Al Qassimi, The Ruler of
the Emirate of Ras Al Khaimah. The Company was duly registered according to the
law with the official competent authorities and Ministry of Economy and Commerce.
The ministerial decision number 7 concerning approval of the Company’s incorporation
was issued on February 11, 1996. The Company is listed in Abu Dhabi Securities
Market.
The principal activity of the Company is producing and marketing portland cement. The
Company has started its commercial production on April 1, 2000.
2. BASIS OF PREPARATION OF CONDENSED INTERIM FINANCIAL
STATEMENTS:
The condensed interim financial statements have been prepared in accordance with the
International Financial Reporting Standards ("IFRS") IAS 34 Interim Financial
Reporting. They do not include all the information required for full annual financial
statements, and should be read in conjunction with the financial statements of the
Company as at and for the year ended December 31, 2009.
In preparing these condensed interim financial statements, the significant judgments
made by the management in applying the Company's accounting policies and the key
sources of estimation uncertainty were the same as those that applied to the financial
statements as at and for the year ended December 31, 2009. In addition, results for the
three-month period ended March 31, 2010 are not necessarily indicative of the results
that may be expected for the financial year ending December 31, 2010.
-7-
RAS AL KHAIMAH CEMENT COMPANY – P.S.C.
RAS AL KHAIMAH
UNITED ARAB EMIRATES
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED MARCH 31, 2010 (UNAUDITED) Continued…
_______________________________________________________________________________________
4. INVESTMENT IN AN ASSOCIATE:
a) Investment in an associate represents the Company’s investment in Reem Ready Mix
LLC, Abu Dhabi. The total number of shares acquired is 6,000 shares of AED
1,000/- each. The Company presently possesses 20% of the shareholders’ capital of
Reem Ready Mix LLC. Investment in an associate is accounted for using the equity
method. The details are as follows:
AED
Cost (6,000 shares of AED 1,000/-each) 6,000,000
Goodwill on acquisition – Note 4 (b) 34,000,000
Total acquisition cost 40,000,000
Share of profit for the year 2009 10,394,396
Balance as on December 31, 2009 (Audited ) – Exhibit A 50,394,396
Less: dividend receivable (4,000,000)
Share of profit for the period 1,552,262
Balance as on March 31, 2010 (Unaudited) – Exhibit A 47,946,658
========
b) Goodwill amounting to AED 34,000,000 has arisen on acquisition of the shares in an
associate, Reem Readymix LLC. Goodwill is initially measured at cost and is tested
for impairment annually (at 31 December) and when circumstances indicate that the
carrying value may be impaired. Impairment is determined by assessing the
recoverable amount of goodwill and where the recoverable amount is less than
carrying amount; an impairment loss is recognized in current year’s income
statement.
5. AVAILABLE-FOR-SALE INVESTMENTS:
a) The movement over these investments are as follows:
March 31,
2010 December 31,
2009
(Unaudited) (Audited)
AED AED
At January 1, 42,540,496 30,613,254
Addition during the period -- 15,534,000
Impairment loss on investments -- (3,606,758)
___________ ___________
Net - Exhibit A 42,540,496 42,540,496
========= =========
b) The above investments are classified as follows:
March 31,
2010 December 31,
2009
(Unaudited) (Audited)
AED AED
Unquoted investments 42,477,242 42,477,242
Quoted investment 63,254 63,254
Total 42,540,496 42,540,496
======== ========
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RAS AL KHAIMAH CEMENT COMPANY – P.S.C.
RAS AL KHAIMAH
UNITED ARAB EMIRATES
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED MARCH 31, 2010 (UNAUDITED) Continued…
_______________________________________________________________________________________
5. AVAILABLE-FOR-SALE INVESTMENTS: (continued…)
c) Available-for-sale investments are classified into the following business segments:
March 31,
2010 December 31,
2009
(Unaudited) (Audited)
AED AED
Investment in an airline company 12,797,867 12,797,867
Investment in a petroleum company 3,945,375 3,945,375
Investment in a power company 2,250,000 2,250,000
Investment in construction company 13,284,000 13,284,000
Investment in financing companies 10,263,254 10,263,254
Total 42,540,496 42,540,496
======== ========
d) The entire available-for-sale investments amounting to AED 42,540,496 as shown
above had been invested in local market of United Arab Emirates.
6. DUE FROM AN ASSOCIATE:
Due from an associate as shown in Exhibit A represents amount due from Reem Ready
Mix LLC as of the financial statements date. The detail is as follows:
March 31,
2010 December 31,
2009
(Unaudited) (Audited)
AED AED
Account receivables 18,402,831 12,478,033
Dividend receivable 4,000,000 -- ____
Total - Exhibit A 22,402,831 12,478,033
======== ========
7. CASH AND CASH EQUIVALENTS:
This item comprises of the following:
March 31,
2010 December 31,
2009
(Unaudited) (Audited)
AED AED
Petty cash account 34,500 34,500
Cash on hand 19,900 6,660
Current account with bank 37,264 37,265
Dividend payment deposit account 1,514,135 1,514,135
Call deposit with bank 5,195,352 5,150,287
Fixed deposits with maturity of
three months or less
90,000,000
85,000,000
_________ _________
Net – Exhibit A 96,801,151 91,742,847
======== ======== -10-
RAS AL KHAIMAH CEMENT COMPANY – P.S.C.
RAS AL KHAIMAH
UNITED ARAB EMIRATES
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED MARCH 31, 2010 (UNAUDITED) Continued…
_______________________________________________________________________________________
8. CAPITAL COMMITMENTS:
As at March 31, 2010, the Company has contractual capital commitments
amounting to AED 5,344,430 related to its ongoing projects.
9. CONTINGENT LIABILITIES:
The Company had issued corporate guarantees and letters of credit to third
parties. The details are as follows:
March 31,
2010 December 31,
2009
(Unaudited) (Audited)
AED AED
Bank letters of credit 1,939,499 8,705,099
Bank letters of guarantee 60,000 60,000
10. APPROVAL OF CONDENSED INTERIM FINANCIAL STATEMENTS:
The condensed interim financial statements were approved by the Chairman of
the Board of Directors and authorized for issue on April 18, 2010.
11. GENERAL:
a) Certain figures have been reclassified, wherever necessary, to conform to the
presentation adopted in these condensed interim financial statements.
b) The figures in these condensed interim financial statements are rounded to the
nearest Dirham of United Arab Emirates.
-11-
RAS AL KHAIMAH CEMENT COMPANY – P.S.C.
RAS AL KHAIMAH
UNITED ARAB EMIRATES
NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED MARCH 31, 2010 (UNAUDITED) Continued…
__________________________________________________________________________________________________________________________________________________
3. PROPERTY, PLANT AND EQUIPMENT:
a) Property, plant and equipment have been stated at cost less accumulated depreciation up to the interim condensed financial statements’ date, as follows:
Cost
Factory
Building
Plant &
Equipment
Mobile
Equipment &
Passenger Cars
Office
Furniture &
Equipment
Land
Improvements
Specialized
& loose
tools
Total
AED AED AED AED AED AED AED
At January 1, 2010 24,117,628 707,430,049 3,049,989 3,093,340 806,190 497,472 738,994,668
Additions -- 364,298 -- -- -- -- 364,298
Disposals -- -- (74,500) -- -- -- (74,500)
__________ ___________ __________ __________ __________ __________ ___________
At March 31, 2010 24,117,628 707,794,347 2,975,489 3,093,340 806,190 497,472 739,284,466
Accumulated Depreciation
At January 1, 2010 8,278,381 210,096,723 1,767,385 2,331,814 693,397 74,641 223,242,341
Charge for the period 192,190 6,280,102 118,414 81,995 31,235 -- 6,703,936
Disposals -- -- (58,324) -- -- -- (58,324)
__________ ___________ __________ __________ __________ __________ ___________
At March 31, 2010 8,470,571 216,376,825 1,827,475 2,413,809 724,632 74,641 229,887,953
Carrying Amount
At December 31, 2009 (Audited) – Exhibit A 15,839,247 497,333,326 1,282,604 761,526 112,793 422,831 515,752,327
========= ========= ========= ========= ======== ========= =========
At March 31, 2010 (Unaudited) – Exhibit A 15,647,057 491,417,522 1,148,014 679,531 81,558 422,831 509,396,513
========= ========= ========= ========= ======== ========= =========
b) The Company's plant is constructed on a leased land renewable on annual basis.
-8-
RAS AL KHAIMAH CEMENT COMPANY – P.S.C.
RAS AL KHAIMAH
UNITED ARAB EMIRATES
CONDENSED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED MARCH 31, 2010 (UNAUDITED)
EXHIBIT D
Share
capital
Reserves
Cumulative changes
in fair value of
investment in shares
Retained
earnings
Net
DESCRIPTION AED AED AED AED AED
Shareholders’ Equity at December 31, 2008 (Audited) 484,000,000 110,906,454 (266,917) 208,390,300 803,029,837
Profit for the period – Exhibit B -- -- -- 29,396,283 29,396,283
Board of directors’ remuneration paid -- ___ -- ___ -- ___ (2,400,000) (2,400,000) Total comprehensive income for the period – Exhibit C -- ___ -- ___ -- ___ 26,996,283 26,996,283
Cash dividend paid -- ___ -- ___ -- ___ (53,240,000) (53,240,000) Shareholders’ Equity at March 31, 2009 (Unaudited) 484,000,000 110,906,454 (266,917) 182,146,583 776,786,120 ========= ========= ======== ======== ========
Shareholder’s equity at December 31, 2009 - (Audited) - Exhibit A 484,000,000 125,267,442 (266,917) 210,194,253 819,194,778
Profit for the period – Exhibit B -- -- -- 3,032,678 3,032,678
Board of directors remuneration paid -- ___ -- ___ -- __ (2,160,000) (2,160,000)
Total comprehensive income for the period – Exhibit C -- . -- . -- . 872,678 872,678
Cash dividend declared transferred to dividend payable -- ___ -- ___ -- __ (48,400,000) (48,400,000)
At March 31, 2010 (Unaudited) – Exhibit A 484,000,000 125,267,442 (266,917) 162,666,931 771,667,456
========= ========== ======== ========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)
-5-
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