ALL AMOUNTS ARE IN MALDIVIAN RUFIYAA UNLESS · 4. 4.1 Presentation and conﬁrmation of the 2012...

3ANNUAL REPORT 2012MALDIVES TRANSPORT & CONTRACTING COMPANY PLC

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ALL AMOUNTS ARE IN MALDIVIAN RUFIYAA UNLESS

OTHERWISE STATED.

US DOLLAR EXCHANGE RATE: MVR 15.42

PUBLISHED BY: MALDIVES TRANSPORT AND CONTRACTING

COMPANY PLC

MAY 2013

NOTICE OF ANNUAL GENERAL MEETING

STATEMENT OF THE CHAIRPERSON

STATEMENT OF CEO

BOARD OF DIRECTORS

SENIOR MANAGEMENT

DIRECTOR'S REPORT

FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS OF 10 YEARS

AUDITOR'S REPORT

CONSOLIDATED BALANCE SHEET

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONSOLIDATED CASH FLOW STATEMENT

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

CORPORATE INFORMATION

In the Name of Allah the most Gracious the most Merciful

4 ANNUAL REPORT 2012MALDIVES TRANSPORT & CONTRACTING COMPANY PLC COM COMPANYPANY PLC PLCANNANNUAL REPORT 2012MALDMALDIVES TRANSPONSPORT &RT & CON CONTRACTRACTINGTING COM COM

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Notice is hereby given that the Annual General Meeting of Maldives Transport and Contracting Company

Plc will be held on 29th May 2013 at 2100hrs at the “Abaarana Hall, Nasandhura Palace hotel”, Male’

Maldives.

A G E N D A

1. Recitation of holy Quran.

2. Announcement and election of Board Directors.

1.1 Intimation of Directors nominated by the Government

1.2 Election of Directors representing public Shareholders, in place of Mr.MansoorZubair,

Kothanmaage, S.Hithadhoo and Mr.MujuthabaJaleel, H.South Reef, who had completed

their terms as directors.

3. Confirmation of Minutes of the Annual General Meeting 2011

4. 4.1 Presentation and confirmation of the 2012 Director’s Report, Auditors Report and the

Audited Financial Statements for the year ended 31st December 2012.

4.2 Confirmation of dividends for the year proposed by the Board of Directors.

5. Appointment of auditors and their fees for the year 2012.

6. Confirmation of the amendment proposed to be brought to the Article of Association.

7. Deliberation by the Shareholders.

8. Conclusion of the meeting.

24 April 2012

By order of the board

FathimathLiusha

Company Secretary


Notice of Annual General Meeting

6 ANNUAL REPORT 2012MALDIVES TRANSPORT & CONTRACTING COMPANY PLC

Statement of the Chairperson

TO OUR SHAREHOLDERS, CUSTOMERS, COLLEAGUES,

PARTNERS AND SUPPLIERS

I am pleased to present the Annual Report and the Statement of

Accounts of Maldives Transport and Contracting Company Plc for

the year ended 31 December 2012. It was a pleasure to note that

the external auditors has expressed an unqualified Audit opinion

for the Financials of the year 2012, which should be considered a

positive improvement in the financial management from preceding

years.

After 3 years of continuous losses I am glad that the company has

performed well with revenue of MVR 579 Million and a net profit

of MVR 24 Million for financial year 2012. This turnaround is the

result of hard work and commitment of 1,004 total dedicated staff

and the trust given to us by our valued customers and business

partners.

STRENGTHENING RELATIONSHIPS

For our clients and customers, the trust they have in the quality

and, safety and promptness of the services we provide is an

essential part of our relationship and measured by how often they

entrust us with new construction projects and the continuity of the

trading relationship in marine equipment and spare parts, and in

the continuity and longevity of our relationships with them.

I want to make special mention of our bankers and financing

partners who have conveyed their confidence by staying with us

through difficult times and helping us in the turnaround and we

look forward to working with them in the future such that necessary

investment to grow and strengthen the company's long term goals.

INVESTMENTS AND REVENUES

Certainty of outcome will always be a key to our success. We have

successfully completed twelve construction projects in 2012 amounting

to MVR 435 Million and ten new projects were started in 2012 continuing

till 2013. Further we have invested in capital assets worth more than MVR

50 Million in 2012 to accomplish the ongoing projects and to strengthen

our capital assets, and by end of 2012 construction segment has made

a profit of MVR 59.6 Million ( 2011: MVR 39.8).

Among the most exciting developments of 2013 in Maldives, MTCC

has signed contracts with Ministry of Housing and Infrastructure to

develop additional 8 harbors in key islands in different region in

the first quarter of 2013; we have explored various opportunities

in 2013 to prove our direction towards success in future. The

estimated investment in capital assets for 2013 towards these

projects exceed MVR 30 Million to be financed through long term

finance lease arrangement with overseas financial institutions.

Trading segment of MTCC has been strengthened to show positive

results in the near future and we are currently in the process of

identifying new branded products on engines and generators to

cater for the existing market demand.



The inability to leverage the properties allocated to the Medhu-

Uthuru Province and the difficulty in raising ferry ticket prices in the

Male’ area has resulted in gross losses of MVR 15.5 Million in the

transport sector however, we are exploring available opportunities

for developing the lands allocated in Male’ to MTCC to subsidize

the loss on the Greater Male’ Ferry operations and new initiatives

are underway to lease the V. Fohtheyo Island which was given to

manage the costs of transport service in Medhu Uthuru Province.

We have also invested in providing new comfortable bus services

in Hulhumale’ and to provide a premium ferry service to Hulhumale’

from Male’ with the aim of providing a fast and comfortable

journey to the increasing population of Hulhumale’. The estimated

investment of these projects exceeds MVR 30 Million.

The Board believes that our long term policy should be to offer

affordable dividends to the shareholders and in this regard I am

pleased to state that the Board has approved a dividend at MVR

15 per ordinary share.

BUILDING A BETTER MTCC

Predicting the future is as difficult as ever. But we know for sure

that successful performance depends on our ability to earn and

maintain the satisfaction and support of our customers and

colleagues. We plan to invest significant time and resources

to both in order to accelerate improvement of our turnaround

strategy. We will make MTCC a great an enjoyable and worthwhile

place to work and to trade with. We will do that by providing

good opportunities, personal development, and building a

culture of trust and confidence. We believe we are today, laying

the foundation to ensure MTCC’s future as the premier public

company in the Maldives.

I take this opportunity to thank the staff of the company at all levels,

company’s bankers, business partners, Government of Maldives

who have offered continuous support through tougher times.

We pray to Allah almighty to continue to bestow a prosperous

future for years ahead. Aameen.

Thank you.

Aiminath Athifa Chairperson


Statement of CEO

Dear Shareholders,

Our goal is long-term, sustainable success that creates value for

shareholders and has a positive impact on the island communities

in which we operate. We believe that the most durable businesses

stand out for their commitment to continuous improvement and

national development. We constantly seek to adapt so that we stay

relevant tomorrow and into the future. That is why MTCC’s history

has always involved constant renewal over the past 32 years. We

know that to remain successful, we can’t stand still.

Looking back on 2012, we’ve implemented our consistent and

dedicated approaches to growth and returns. We’ve invested

where it matters most with a strong focus on driving greater

efficiency across our operations. We believe this is the best formula

to achieve sustainable growth in revenue, profit and cash flow

over time. Our innovative approaches to business development

and commitment to succeed, has increased our sales by 15%

equivalent to MVR 74 million in 2012, compared to 2011. The

company has achieved a net profit of MVR 24 million, with a net

profit margin of 4%, compared against the net loss of MVR 8

million the previous year. From the operating profit perspective,

2011 yielded a positive outcome with a margin of 4% resulting in

MVR 18 million. We have doubled the operating profit percentage

to a staggering 6% in 2012 to a value of MVR 36 million, with a

60% reduction in financing costs. We are pleased to note that the

return on long-term assets in 2012 has increased to positive 11%

compared to negative 4% the year before.

The net asset value per share has been increased to MVR 1018

from MVR 898 value per share in the twelve-month under review.

Earnings per share in 2012 has moved to MVR 96 per share while

it stood at MVR -33 per share during the year 2011. The return on

equity has also moved up to 10% compared to the negative return

of 3% in 2011, with the gearing ratio significantly improved from

26% in 2012 compared to a gearing ratio of 31% in the previous

year. Most importantly, our operating cash flow has increased to

MVR 72 million during the year, although debt repayment has been

doubled, compared to the negative cash flow of MVR 6 million in

2011.



These buoyant results demonstrate the benefit of the rapid

action we took to address the current economic conditions and

highlight the benefits of our diversity of business. These financial

results reflect the benefits of the actions we took to adjust to the

deteriorating economic environment globally and in the Maldives,

in particular with respect to costs of raw materials for construction.

Despite what continues to be a tough economic environment, we

are pleased to declare a dividend of MVR 15 per share for 2012.

MTCC has increased its investments in capital assets by circa

85 percentage points amounting to MVR 50 million in 2012,

compared to 2011. Notable capital investments initiated during

the year include the purchase of a tug and barge to expand our

international transport services and class entry of a tug and barge

we own to comply with the port state control legislations in our

trading countries. Laying the groundwork of a docking facility

based on inflatable lifting airbags at Thilafushi, and purchase

of four brand new Volvo buses, electronic ticketing gates and

premium ferries to improve the public transport services in

Hulhumale’ network also commenced in 2012.

To conclude, we assure our firm commitment to sustain the

highest levels of professionalism, integrity, honesty and fairness in

our relationships with our suppliers, subcontractors, professional

associates and customers, and in undertaking our corporate social

responsibilities. We are dedicated in enhancing safety standards

and fostering teamwork at the workplace, while providing

opportunity, training and support to develop highest quality and

enthusiastic staff in MTCC, which are essential for the longevity of

the company. We believe that good corporate governance is in the

long-term interest of MTCC and the management is conscious of

our responsibilities for setting values, which underpin high ethical

and moral standards.

Thank you

Dr. Ahmed Adham Abdulla

Chief Executive Officer


54321

Dr. AHMED ADHAM ABDULLACHIEF EXECUTIVE OFFICER

Dr. Ahmed Adham Abdulla is an appointed Member of the Board of Directors and the Chief Executive Officer of MTCC, from 3rd April 2012. He holds a Doctor of Philosophy Degree from the University of Wollongong at New South Wales, Australia.

Dr. Ahmed Adham Abdulla has served as an Assistant Director at the Ministry of Transport and Communication of Maldives for two years commencing from September 2005. He is also a recipient of the ‘Australian Leadership Award’, presented by AusAid of the Commonwealth Government of Australia in 2007.

Dr. Ahmed Adham Abdulla represents the Company in the Board of Airport Investments Maldives Pvt. Ltd from 07th May 2012 and Maldives Finance and Leasing Company Pvt Ltd from 14th May 2012.

MR. IHSAAN SHAREEFEXECUTIVE DIRECTOR

Mr. Ihsaan Shareef is an Executive member of the Board of Directors of MTCC appointed by the government from 26th August 2012. Heholds a Bachelors Degree in Science from the University of Madras, India.

He joined MTCC in 1999 and is the Executive of Trading Department of MTCC from 28th March 2010.Prior to that he had also served as the head of Rentals & Auction Department and Sales & Marketing Department.

Mr.Ihsaan Shareef has gained vast experience in the field of Sales and Marketing through various trainings and workshops locally and internationally.

MR. MUJUTHABA JALEELDIRECTOR

Mr.Mujuthaba Jaleel is an independent member of the Board of Directors of MTCC, elected by the shareholders from 30th October 2011. He holds a Masters Degree in Financial and Business Management from Kingston University, London, and Bachelors of Accounting Degree from International Islamic University, and is a member of the Association of Chartered Certified Account (ACCA) as well as the Association of Certified Accounting Technician (CAT).

Mr.Mujuthaba Jaleel serves as the Head of Internal Audit Department of Maldives Ports Limited, and has also worked as the Chief Audit Executive of Villa Group.

Mr.Mujuthaba Jaleel represents the Company in the Board of Airport Investments Maldives Pvt. Ltd from 28th March 2012. He is also a board member of Maldives Pension Administration Office and Palm Fringe Maldives Pvt Ltd.

Ms. AMINATH ATHIFACHAIRPERSON

Ms. Aminath Athifa is the appointed Chairperson of the Board of Directors of MTCC, by the governement from 06th May 2012. She holds a Masters Degree in Urban Engineering from Loughborough University, UK and a postgraduate diploma from IHS, Netherlands.

Ms.Aminath Athifa has held senior positions at Ministry of Housing and Infrastructure and currently is the Deputy Executive Director. She had been working in the sector since 1994 and has had extensive experience in urban planning, infrastructure and other development issues of the sector. She has been in continuous public service from 1982

Ms. Aminath Athifa was a member of the Board of Directors of MTCC from 18th August 2004 to 20th July 2006 and also a member of the technical committee of the governement for drafting the building code, drafting the land law, and also was involved in the drafting of other laws in the field.She is a development practitioner who has done extensive work in the sector and has written various papers and had represented the country and the sector in various forums.

She has attained significant achievements in her carrier including many awards in her graduate years and does extensive work in the social sector.

MR. MANSOOR ZUBAIRDIRECTOR

Mr. Mansoor Zubair is an independent member of the Board of Directors of MTCC, elected by the shareholders from 29th April 2009. He holds a Bachelors Degree in Commerce (Banking and Finance) from Curtin University of Technology, Australia.

Mr. Mansoor Zubair serves as a Manager at Maldives Monetary Authority and has gained vast experience in finance sector over the past 12 years.

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Board of Directors


MR. IMRAN WAJDIDIRECTOR

Mr. Imran Wajdi is an independent member of the Board of Directors of MTCC, appointed by the government from 06th May 2012. He holds a Masters Degree in Business Administration from Edith Cowan University, Australia.

Mr. Imran Wajdi who is currently employed as a Director at Department of Judicial Administration, also serves as the head of Information and Technology (Division). Additionally, he is also a member of Finance Committee of the department.

MR. MOHAMED NABEELDIRECTOR

Mr.Mohamed Nabeel is an independent member of the Board of Directors of MTCC appointed by the government from 09th January 2013.

Mr. Mohamed Nabeel currently serves as the Executive Committee Member of Netball Association of Maldives from 2009 and as the Vice President from 2012. He has also served as the General Secretary and President of Disciplinary Committee at Netball Association of Maldives. Additionally he servses as the Executive Committee Member at the Maldives Olympic Committee from the year 2012.

MR. ALI SHAFEEUDIRECTOR

Mr. Ali Shafeeu is an independent member of the Board of Directors of MTCC, elected by the shareholders from 19th August 2009. He holds a Master’s degree in Business Administration (specialized in finance) and is an affiliated member of Association of Chartered Certified Accountant (ACCA) of UK.

Currently the Director of Administration & Finance in the Maldives Civil Aviation Authority, Mr.AliShafeeu has also served as the Financial Controller at Maldives Post Limited.

Prior to the above, Mr.Ali Shafeeu has served 12 years at various designations within the finance department of Maldives Airports Company Limited.

MR. HUSSAIN HAALYDIRECTOR

Mr. Hussain Haaly is an independent member of the Board of Directors of MTCC elected by the shareholders from 30th July 2012. Mr.HussainHaaly was also a member of the Board of Directors of MTCC from 27 August 2005 to 30 October 2011.

Mr. Hussain Haaly is currently a shareholder of Quattron Maldives Private Limited and has more than 18 years of business experience in the private sector. He holds a Diploma in Information Technology from University of Wollongong – Institute of Management and Administration.

MR. MOHAMED ALIDIRECTOR

Mr. Mohamed Ali is a non-executive member of the Board of Directors of MTCC appointed by the government from 6th May 2012. He holds a Masters Degree in Architectural Engineering from University of Leeds, UK.

Mr.Mohamed Ali is also a Director at Ives Pvt Ltd, ArchEng Studio Pvt.Ltd and Cementec Pvt. Ltd. He has also gained broad experience in the field by working in various posts at Ministry of Construction and Public Infrastructure (MCPI) from 2001 to 2008.

He is a registered Professional Engineer and a registered Civil and Structural Engineer at the Ministry of Housing and Infrastructure.

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En

gin

ee

r a

nd

Ac

tin

g H

ea

d o

f C

PM

D.

He

ha

s g

ain

ed

ext

en

siv

e e

xpe

rie

nc

e a

nd

in

th

e fi

eld

of

Co

nstr

uc

tio

n

an

d P

roje

ct

Ma

na

ge

me

nt,

an

d h

old

s a

Ba

ch

elo

r’s D

eg

ree

in

Civ

il a

nd

Str

uc

tura

l E

ng

ine

eri

ng

(H

on

s)

fro

m U

niv

ers

ity o

f B

rad

ford

, U

K.

Mr. S

ae

ed

als

o w

ork

s a

s a

me

mb

er

of

the

Bo

ard

of

Dir

ec

tors

of

Ma

ldiv

es C

ivil

Avia

tio

n A

uth

ori

ty (

Bu

sin

ess A

rea

).

Dr. A

HM

ED

AD

HA

M A

BD

ULLA

CH

IEF

EX

EC

UT

IVE

OF

FIC

ER

Dr. A

hm

ed

Ad

ha

m A

bd

ulla

is a

n a

pp

oin

ted

Me

mb

er

of

the

Bo

ard

of

Dir

ec

tors

an

d t

he

Ch

ief

Exe

cu

tive

Offi

ce

r o

f M

TC

C,

fro

m 3

rd A

pri

l 2

01

2.

He

ho

lds a

Do

cto

r o

f P

hilo

so

ph

y D

eg

ree

fro

m t

he

Un

ive

rsity

of

Wo

llon

go

ng

at

Ne

w S

ou

th W

ale

s,

Au

str

alia

.

Dr. A

hm

ed

Ad

ha

m A

bd

ulla

ha

s s

erv

ed

as a

n A

ssis

tan

t D

ire

cto

r a

t th

e M

inis

try o

f Tr

an

sp

ort

an

d C

om

mu

nic

atio

n o

f M

ald

ive

s f

or

two

ye

ars

co

mm

en

cin

g f

rom

Se

pte

mb

er

20

05

. H

e i

s a

lso

a r

ec

ipie

nt

of

the

‘A

ustr

alia

n L

ea

de

rsh

ip A

wa

rd’,

pre

se

nte

d b

y A

usA

id o

f th

e

Co

mm

on

we

alth

Go

ve

rnm

en

t o

f A

ustr

alia

in

20

07

.

Dr. A

hm

ed

Ad

ha

m A

bd

ulla

re

pre

se

nts

th

e C

om

pa

ny i

n t

he

Bo

ard

o

f A

irp

ort

In

ve

stm

en

ts M

ald

ive

s P

vt.

Ltd

fro

m 0

7th

Ma

y 2

01

2 a

nd

M

ald

ive

s F

ina

nc

e a

nd

Le

asin

g C

om

pa

ny P

vt

Ltd

fro

m 1

4th

Ma

y 2

01

2.

MR

. A

HM

ED

SA

LA

M

Mr. A

hm

ed

S

ala

m jo

ine

d M

TC

C in

1

99

9.

He

w

as a

pp

oin

ted

a

s

the

He

ad

of

Info

rma

tio

n C

om

mu

nic

atio

n T

ec

hn

olo

gy D

ep

art

me

nt

on

22

nd

Ap

ril

20

12

. H

e h

old

s a

Ba

ch

elo

r’s D

eg

ree

in

Co

mp

ute

r S

cie

nc

e f

rom

Un

ive

rsity o

f W

ollo

ng

on

g,

Au

str

alia

.

With

en

orm

ou

s b

ac

kg

rou

nd

in

IT

fie

ld h

e s

erv

ed

th

e c

om

pa

ny a

s a

S

oft

wa

re P

rog

ram

me

r a

nd

Ma

na

ge

r a

t IC

T D

ep

art

me

nt

du

rin

g t

he

last

ten

ye

ars

.

Mr. S

ala

m w

as a

pa

rt t

ime

le

ctu

rer

at

Fa

cu

lty o

f E

du

ca

tio

n f

rom

2

00

7 t

o 2

00

9 a

nd

als

o s

erv

es a

s a

gu

est

lec

ture

r a

t F

ac

ulty o

f H

osp

ita

lity a

nd

To

uri

sm

S

tud

ies o

f M

ald

ive

s N

atio

na

l U

niv

ers

ity

fro

m 2

01

2.

MR

. IS

MA

IL F

AR

IQ

Mr. I

sm

ail

Fa

riq

jo

ine

d M

TC

C i

n 2

00

1.

He

wa

s a

pp

oin

ted

as t

he

He

ad

o

f Tr

an

sp

ort

D

ep

art

me

nt

on

0

6th

M

ay 2

01

2.

He

h

old

s a

B

ac

he

lor

De

gre

e

in

Bu

sin

ess

Ma

na

ge

me

nt

fro

m

Un

ive

rsity

of

Qu

ee

nsla

nd

, A

ustr

alia

.

He

se

rve

d

as

the

h

ea

d

of

Pro

cu

rem

en

t D

ep

art

me

nt,

L

og

istic

al

Op

era

tio

ns

De

pa

rtm

en

t,

Bu

ildin

g

Se

rvic

es

an

d

Se

cu

rity

D

ep

art

me

nt

an

d B

usin

ess D

eve

lop

me

nt

De

pa

rtm

en

t sin

ce

20

01

. M

r. F

ari

q s

erv

ed

as a

n E

xec

utive

Dir

ec

tor

at

the

MT

CC

’s B

oa

rd

Dir

ec

tors

fro

m 0

6th

Ma

y 2

01

2 t

o 0

2n

d J

uly

20

12

.

MS

. A

BID

A R

AS

HE

ED

Ms.

Ab

ida

R

ash

ee

d jo

ine

d M

TC

C in

1

98

3.

Sh

e w

as a

pp

oin

ted

H

ea

d o

f C

orp

ora

te D

ep

art

me

nt

on

14

th N

ove

mb

er

20

12

.

Sh

e h

as g

ain

ed

en

orm

ou

s e

xpe

rie

nc

e a

nd

exp

ert

ise

in

th

e fi

eld

o

f m

an

ag

em

en

t, w

ith

vo

ca

tio

na

l tr

ain

ing

fro

m l

oc

al

an

d o

ve

rse

as

pro

gra

ms a

nd

wo

rksh

op

s.

Ms.

Ab

ida

Ra

sh

ee

d s

erv

ed

va

rio

us d

ep

art

me

nts

in

th

e c

om

pa

ny

as

the

h

ea

d

inc

lud

ing

A

dm

inis

tra

tio

n

De

pa

rtm

en

t,

Re

nta

ls

an

d

Au

ctio

n D

ep

art

me

nt,

an

d B

usin

ess D

eve

lop

me

nt

De

pa

rtm

en

t. I

n

ad

ditio

n s

he

se

rve

d a

s t

he

Assis

tan

t M

an

ag

ing

Dir

ec

tor

of

“Air

po

rts

Inve

stm

en

t M

ald

ive

s P

riva

te L

td”.

14

7 8 9

25

3

6

MR

. IB

RA

HIM

LA

TH

EE

F

Mr. I

bra

him

La

the

ef

join

ed

MT

CC

in

19

99

. H

e w

as a

pp

oin

ted

as

an

Exe

cu

tive

at

the

Bu

sin

ess D

eve

lop

me

nt

De

pa

rtm

en

t o

n 0

8th

A

ug

ust

20

12

. H

e h

old

s a

De

gre

e i

n M

ark

etin

g w

ith

Ho

no

rs f

rom

U

niv

ers

ity o

f H

ert

ford

sh

ire

, U

K.

He

se

rve

d

as

the

E

xec

utive

o

f A

dm

inis

tra

tio

n

De

pa

rtm

en

t,

Ma

rke

tin

g D

ep

art

me

nt,

Pro

cu

rem

en

t D

ep

art

me

nt a

nd

as th

e A

ctin

g

He

ad

of

Bu

ildin

g S

erv

ice

s a

nd

Se

cu

rity

De

pa

rtm

en

t.

Mr.

La

the

ef

is

an

a

ffilia

ted

m

em

be

r o

f C

ha

rte

red

In

stitu

te

of

Ma

rke

tin

g (

CIM

).

MS

. A

ISH

AT

H S

US

AN

HA

NE

EF

Ms. A

ish

ath

Su

sa

n H

an

ee

f jo

ine

d M

TC

C in

20

00

. Sh

e w

as a

pp

oin

ted

a

s H

ea

d o

f C

orp

ora

te B

ure

au

on

14

thN

ove

mb

er

20

12

. S

he

ho

lds

a M

aste

r’s D

eg

ree

in

B

usin

ess A

dm

inis

tra

tio

n (M

ark

etin

g)

fro

m

Un

ive

rsity o

f Q

ue

en

sla

nd

, A

ustr

alia

a

nd

a

B

ac

he

lor’

s D

eg

ree

in

B

usin

ess A

dm

inis

tra

tio

n (

Inte

rna

tio

na

l B

usin

ess)

fro

m U

niv

ers

ity o

f E

ast

Lo

nd

on

, U

K.

Ms.

Ais

ha

th

Su

sa

n

se

rve

d

as

He

ad

o

f B

uild

ing

S

erv

ice

s

an

d

Se

cu

rity

De

pa

rtm

en

t, M

ark

etin

g D

ep

art

me

nt,

Re

nta

ls D

ep

art

me

nt

an

d C

orp

ora

te D

ep

art

me

nt.

Ms.

Su

sa

n i

s a

vis

itin

g l

ec

ture

r a

t V

illa

Co

lleg

e a

nd

Th

e M

ald

ive

s

Na

tio

na

l U

niv

ers

ity.

MR

. M

OH

AM

ED

HU

SS

AIN

Mr. M

oh

am

ed

Hu

ssa

in jo

ine

d M

TC

C in

19

89

. H

e w

as a

pp

oin

ted

as

the

Assis

tan

t F

ina

nc

ial C

on

tro

ller

on

26

th S

ep

tem

be

r 2

01

2.

Mo

ha

me

d

Hu

ssa

in

ha

s

co

mp

lete

d

Dip

lom

a

in

Ac

co

un

tin

g

an

d

co

un

ts m

ore

th

an

23

ye

ars

of

exp

eri

en

ce

as a

Ma

na

ge

r in

va

rio

us

de

pa

rtm

en

ts in

clu

din

g A

cc

ou

nts

an

d F

ina

nc

e D

ep

art

me

nt,

Re

nta

ls

an

d A

uc

tio

n D

ep

art

me

nt

an

d T

ran

sp

ort

De

pa

rtm

en

t.

MR

. A

HM

ED

NA

SE

EM

Mr. A

hm

ed

Na

se

em

jo

ine

d M

TC

C i

n 1

99

9.

He

wa

s a

pp

oin

ted

as

the

He

ad

of

Bu

sin

ess D

eve

lop

me

nt

De

pa

rtm

en

t o

n 0

4th

No

ve

mb

er

20

12

. H

e h

old

s a

Ba

ch

elo

rs D

eg

ree

(H

on

ors

) in

Ne

two

rk C

om

pu

tin

g

fro

m t

he

Co

ve

ntr

y U

niv

ers

ity,

UK

. H

e i

s a

ffilia

ted

with

op

en

so

urc

e

initia

tive

s.

He

se

rve

d

va

rio

us

role

s

in

the

H

um

an

R

eso

urc

es

De

pa

rtm

en

t a

nd

In

form

atio

n C

om

mu

nic

atio

n Te

ch

no

log

y D

ep

art

me

nt

du

rin

g

the

la

st

11

ye

ars

. A

lso

he

se

rve

d a

s a

me

mb

er

of

Bo

ard

of

A2

Z

So

lutio

ns P

vt

Ltd

.

MR

. U

SM

AN

HA

FE

EZ

Mr. U

sm

an

Ha

fee

z j

oin

ed

MT

CC

in

19

85

. H

e w

as a

pp

oin

ted

as

the

he

ad

of

Lo

gis

tic

al a

nd

Op

era

tio

ns D

ep

art

me

nt

on

15

th J

an

ua

ry

20

12

.

Mr.

Usm

an

h

as

se

rve

d

as

the

H

ea

d

of

Fin

an

ce

D

ep

art

me

nt,

C

orp

ora

te

De

pa

rtm

en

t,

Co

nstr

uc

tio

n

an

d

Pro

jec

ts

Ma

na

ge

me

nt

De

pa

rtm

en

t,

Pro

cu

rem

en

t D

ep

art

me

nt.

H

e

ha

s

pa

rtic

ipa

ted

in

m

an

y s

ho

rt t

erm

tra

inin

g p

rog

ram

s o

n m

an

ag

em

en

t a

nd

qu

alit

y a

ssu

ran

ce

.

MR

. IH

US

AA

N S

HA

RE

EF

Mr.

Ihu

sa

an

S

ha

ree

f jo

ine

d

MT

CC

in

1

99

9.

He

w

as

ap

po

inte

d

as H

ea

d o

f Tr

ad

ing

De

pa

rtm

en

t o

n 2

8 M

arc

h 2

01

0 a

nd

ho

lds a

B

ac

he

lors

De

gre

e in

Sc

ien

ce

fro

m t

he

Un

ive

rsity o

f M

ad

ras,

Ind

ia.

He

se

rve

d a

s t

he

he

ad

of

Re

nta

ls a

nd

Au

ctio

n D

ep

art

me

nt

an

d

Sa

les &

Ma

rke

tin

g D

ep

art

me

nt.

Mr.Ih

sa

an

Sh

are

ef

ha

s g

ain

ed

va

st

exp

eri

en

ce

in

th

e fi

eld

of

Sa

les

an

d M

ark

etin

g th

rou

gh

va

rio

us tra

inin

gs a

nd

wo

rksh

op

s lo

ca

lly a

nd

in

tern

atio

na

lly.

MR

. S

HIF

AU

ALI

Mr. S

hifa

u A

li jo

ine

d M

TC

C in

20

07

. H

e w

as a

pp

oin

ted

as t

he

He

ad

o

f P

roc

ure

me

nt

De

pa

rtm

en

t fo

r a

se

co

nd

tim

e o

n 6

th M

ay 2

01

2. H

e

als

o s

erv

ed

as t

he

he

ad

of

Fin

an

ce

De

pa

rtm

en

t fo

r a

bri

ef

pe

rio

d

be

fore

assu

min

g h

is c

urr

en

t p

ositio

n.

Mr. S

hifa

u A

li h

old

s a

n H

on

ors

De

gre

e i

n A

cc

ou

ntin

g a

nd

Fin

an

ce

fro

m U

niv

ers

ity o

f E

ast

Lo

nd

on

, U

K.

Pri

or

to jo

inin

g M

TC

C,

he

se

rve

d a

t M

olo

qu

e&

Ho

rsb

urg

h P

ub

lic A

cc

ou

nta

nts

P

vt

Ltd

a

nd

a

lso

as a

fin

an

cia

l a

nd

au

dit a

nd

assu

ran

ce

co

nsu

lta

nt

at

va

rio

us

pri

va

te c

om

pa

nie

s o

f M

ald

ive

s.

MR

. M

OH

AM

ED

HIL

MY

Mr.M

oh

am

ed

Hilm

y jo

ine

d M

TC

C in

20

11

. M

r. M

oh

am

ed

Hilm

y w

as

ap

po

inte

d a

s t

he

Ch

ief

Fin

an

cia

l O

ffic

er

on

24

th A

pri

l 2

01

3.

He

is

a m

em

be

r o

f th

e A

sso

cia

tio

n o

f C

ha

rte

red

Ce

rtifi

ed

Ac

co

un

tan

ts

(AC

CA

) a

nd

a

m

em

be

r o

f th

e

Ce

rtifi

ed

A

cc

ou

ntin

g

Tec

hn

icia

n

(CA

T).

Pri

or

to j

oin

ing

MT

CC

, h

e s

erv

ed

at

Ma

ldiv

es P

ort

s L

imite

d a

nd

P

ric

e W

ate

rho

use

Co

op

ers

in

th

e fi

eld

of

Fin

an

ce

an

d A

ud

itin

g.

Mr.M

oh

am

ed

Hilm

y h

as a

lso

se

rve

d t

he

co

mp

an

y a

s t

he

Fin

an

cia

l C

on

tro

ller.

10

11

12

13

16

17

14

15


ANNANNANNUALUAL RE RE REPORPORPORT 2T 2T 2012012012MALDMALDMALDIVESIVES TRA TRA TRANSPONSPORT &RT & CON CON CONTRACTRACTRACTRACTING COM COMPANYPANY PLC

Director's Report


Business Review The company has experienced downturn in the recent past years,

but the continuous, countless dedicated efforts and approaches of

the Board of Directors and the management during the year 2012

to strengthen, develop and grow the business of the company

has steered us to overcome the difficult times. As a result, MTCC

recorded a profitable year in 2012.

Additional efforts were made during the year to strengthen the

relationships between the company and its major suppliers, which

were effected due to the downturn. The improved relationship

saw the company enjoying favorable credit and payment terms,

increased trade and trust built between the company and the

suppliers.

To sustain and develop the trading business of the company, the

company along with the experts of the products traded, focused

on winning back the customers who the company has lost in

the past years, by travelling across the country. The work saw

the company reviving back the relationship with most of these

customers.

The year under review also saw increased commitment of the

company towards manpower development, which had been

slowed down in the recent years.

In order to overcome the difficulties in the construction sites due to

the shortage of heavy machinery and equipment’s, the company

decided to invest 50 million in capital assets during the year 2012.

The company carried out a total of 19 projects during the year,

out of which 10 projects were completed in the year 2012. The

projects that were completed during the year include:

1. 40 Housing Project at M.Kolhufushi

2. Hulhumale’ Road Development Project

3. Land reclamation Project at B.Dharavandhoo

4. Harbor Construction Project at GDh.Fares-Maathoda

5. Harbor Construction Project at GDh.Vaadhoo

6. Shore Protection Project at HA.Dhidhoo

7. 168 Housing Project at M.Kolhufushi

8. Harbor Construction Project at HA.Ihavandhoo, HA.Hoarafushi

and K.Dhiffushi

9. Harbor Construction Project at B.Goidhoo and AA.Mathiveri.

10.Harbor entrance dredging and rock boulder seawall

construction project at AA.Feridhoo

Ongoing projects by the end of the year 2012 are as follows;

1. Harbor construction project at N.Manadhoo

2. Harbor construction project at F.Bilehdhoo

3. Harbor construction project at R.Ungoofaaru

4. Harbor construction project at HDh.Makunudhoo

5. Domestic Airport Development Project at Th.Thimarafushi

6. Harbor construction project at M.Mulah

7. Harbor construction project at F.Feeali

8. Harbor construction project at Dh.Magoodhoo

9. Land reclamation Project at Sh.Komandoo

Despite the fact that the Company is incurring significant

losses in the transport sector, strategic decisions were made to

minimize the loss incurred from this sector. Continuous efforts

are also made to focus on improving the service provided by

the sector. Considering the need of immediate requirements of

the population from new housing schemes in Hulhumale’, the

company is committed to invest in building a Premium Ferry to

provide transport service between Male’ and Hulhumale’. Further

developments in the sector include upgrading of ferry terminals

and investment on the Automatic Fare Collection System for the

customers. The Automatic Fare Collection system will minimize the

waiting time on the queue for collection of tickets by passengers.

During the year under review, the company made extensive efforts

to develop the lands received by the Government to subsidize

the Greater Male’ Ferry Service. As a result, bids for finding an

investment partner for the entertainment center proposed to be

developed at the Villingili Ferry Terminal land in Male’ and parking

block in the adjacent land was announced, but was unsuccessful

due to some challenges.

Development of the island V.Fohtheyo, awarded by the government

towards subsidization of the loss incurred by the North Central

Province Ferry Service was vital to the company. Despite the

immense effort made by the company to develop it as a resort, it

failed to materialise during the year 2012. The ship agency service

provided by the company continued during the year 2012.

Business Development and Marketing is crucial to the development

of the business. During the year 2012, extensive efforts were made

to find new business opportunities and to develop the current

business sectors.

Promotional campaign for the product “Castrol” was carried out

across the country, special focus was also given to introduce and

promote the product to vessel owners and resorts.

The company also indulged in promoting the Yanmar Engines

to the new boat builders and owners of small fishing boats. The

experts of Yanmar Asia Singapore Corporation carried out the

marketing activity jointly with the Company. The builders and

owners were introduced and informed of the most suitable Yanmar

Engines for their new vessels.


We Value Our EmployeesAttracting, motivating and retaining talented people and helping

them perform at consistently high levels are all vital to our

continued success.

The most valuable asset to a company is its dedicated employees.

During the year under review, great emphasis was placed in

the development of our employees and providing additional

incentives. The Company made extensive efforts to create a

pleasant environment in order to get the most productive and

creative results from our employees.

At the end of the year 2012 we had 932 (837 male and 95 female)

employees of which 511 were local employees and 421 were

expatriate workers.

HUMAN CAPITAL DEVELOPMENT

During the year, the Company focused on sustainable employee

training and development to ensure that we achieve our corporate

goals and safeguard MTCC’s competitiveness in the long term.

509 employees participated in various short-term trainings held

locally and internationally while 2 employees pursued their long

terms trainings overseas.

Trainings that were given to the employees include marine safety,

first aid, health and safety management, customer service,

financial costing, budgeting, control and risk management,

project management, procurement and logistics management,

repair and maintenance, information, communication technology

and corporate social responsibility. In addition to this, trainings

were provided for repairing the caterpillar machineries used by the

company. These trainings were conducted with the help of foreign

experts in the field.

Moreover, in an attempt to make all our employees more aware

of the corporate governance code, an information session was

conducted in collaboration with Capital Market Development

Authority of the Maldives.

Similar to the past year, employee orientation programs were held

to welcome the new recruits’ to the company. All employees were

evaluated according to the salary and benefit policy in the year

2012.

All the Maldivian employees of the company are registered in the

Maldives Pension Administration Registry.

EMPLOYEE RELATIONS

MTCC recreation club organized several social and recreational

activities during the year which contributed to our team building

goal among the employees. Furthermore, to have a better relation

between employees and the company, an HR hotline, an online

help desk and an online HR portal were launched during the year.


The Share The shareholding structure of the company remained unchanged

during 2012. As at 31st December 2012, Government of Maldives

owned 47.8% of the shares, Maldives National Shipping Limited

owned 7.5% and the public owned 44.7%.

At the end of 2012, shareholding structure stood as shown below:

SHARE MARKET PERFORMANCE

During 2012 a total of 15 shares of MTCC were traded in the

stock market, which is an 82% decrease in the share movement

compared to the 85 share which was traded during the year 2011.

The highest and lowest share price an MTCC share traded in 2012

was MVR 200. The last share transaction during the year 2011 was

traded at MVR 200 per share, while the market capitalization at the

end of 2012 stood at MVR 50 million.

No dividend was declared for the year 2011, by the Annual General

Meeting held on 30th July 2012.

2012

Group

2011

Group

2010

Group

2009

Group

2008

Group

2008 2012201120102009

3%

3%0

.06%

0.0

6%

-11%

-12%

8%

8%

14%

14%

14%16% 19

%

19

%

Divident Yield Operating Return on Equity

DIVIDEND YEILD & OPERATING RETURN ON EQUITY

( MVR )

2012

Group

2011

Group

2010

Group

2009

Group

2008

Group

2008 2012201120102009

-49

-57

10

10

-193

-194

-33

-33

10

6

10

6

103

135

50

50

Earnings per Share Divident per Share

EARNINGS PER SHARE &DIVIDEND PER SHARE

( MVR )

GOVERNMENT

NO. OF SHARES: 119,661

PUBLIC


MNSL


2012

Group

2011

Group

2010

Group

2009

Group

2008

Group

2008 2012201120102009

Average Market price

Net Assets Value per Share

AVERAGE MARKET PRICE AND NET ASSETS VALUE PER SHARE

( MVR )

1,3

07

1,2

16

1,1

74

1,0

25

993

930

898

1,0

50

1,0

18

1,3

42

180

180

156

156 265

265

230

200

267

267

0

20

100

300

500

350

550

400

600

450

650

200.00

150

200

250

2010

2012

2011

2008

2006

2004

2009

2007

2005

2003

SHARE PRICE MOVEMENT( MVR )


Financial ReviewThe financial year 2012 witnessed MTCC has overwhelmed results

from its last 3 years of challenging commercial recession by

making a Net Profit Before Tax of MVR 26.5 Million with a Turnover

of MVR 579 Million.

OPERATING RESULTS

The Group delivered a strong performance in profitability in the

year under review. Revenue has increased by 15% compared to

2011 and operating profit has gone up by 97% in 2012 compared

to 2011. Cost of Sales and Expenses also has come down by 1%

and 4% respectively compared to last year.

Finance Costs have been significantly reduced during the year in

comparison to 2011 due to exchange gain of MVR 3.08 Million

from appreciation of MVR against Japanese YEN, conversely in

2011 the company had incurred an exchange loss of MVR 10.8

Million in 2011 due to depreciation of MVR against USD, which

had a negative impact on import lead business.

Business Profit Tax of MVR 2.5 Million has been provided as

expense in the income statement based on the BPT Act and

Regulation 2011/R-35, company is liable to pay tax on business

profits from 18 July 2011. During the year 2012, MVR 848,894

had been paid as interim payment to Maldives Inland Revenue

Authority.

INVESTMENT AND FINANCING ANALYSIS

In 2012 Company has purchased MVR 50,894,415 value of

Property, plant and equipment through leasing facilities and its

own operating cash flows. Value of company share investments

in shares of Bank of Maldives has also increased by 5.9 Million

during 2012, compared to the devaluation of (15.3) Million in

2011, which has substantially increased the value of long term

investment and shareholders’ equity.

Cash generated from operating activities of MVR 72 Million has

been utilized on repayment of long term borrowings and acquisition

of capital assets. Company has purchased MVR 33 Million worth

of machineries and equipment from Caterpillar Finance Singapore

Limited under a long term 5 year leasing facility. In the meantime,

company has repaid ITFC loan amounting to MVR 24.8 Million and

Caterpillar Finance loan of MVR 10.1 Million in 2012.

As a result, total debt of the company has decreased by MVR 53.8

Million in 2012 and Gearing Ratio has reduced to 26% in 2012

compared to 31% in 2011.

WORKING CAPITAL MANAGEMENT

The management of the Company has put significant effort to

efficiently utilize the working capital of the company by taking

actions on collections of receivables and inventory management.

As a result, inventory turnover period has decreased to 75 days in

2012 compared to 91 days in 2011 and debtor’s collection period

has significantly reduced in 2012 by 166 days from 197 days in

2011.

Current assets ratio has increased to 1.47 x in 2012 compared

1.07 x in 2011. Likewise, Quick Assets Ratio also has increased in

2012 to 1.04 x from 0.79 x in 2011.

TOTAL EQUITY TO TOTAL DEBT( MVR MILLIONS )

2012 2008200920102011

123

255

1232

55

17

6

255

162

248

211

327

Total Equity Total Debt

WORKING CAPITAL( MVR MILLIONS )

2008 2012201120102009

0

20

100

300

500

350

400

450

150

200

250

Liquid AssetsCurrent AssetsCurrent Liability

Profi t / (loss)Revenue

KEY INDICATORS( MVR )

2012

2011

2010

2009

2008

505

381

473

684

579

-49

-14

26

-8

27

20122011201020092008

COMPARISON OF OPERATING PERFORMANCE

( MVR MILLIONS )

267

473

38

1

505 5

79

141

108

31 7

8 90

45

8-2

9

19 37

26

-14

-49 -8

27

Revenue Gross Profit Operating Profit Net Profit


VALUE ADDITION TO EQUITY HOLDERS

The Group has accumulated a gross value to equity holders

amounting to MVR 29,925,202 resulting in Return on Equity of

9.43% during the year, increasing from MVR 898 to MVR 1,018

per share.

RETURN ON EQUITY( PERCENTAGE )

2012

Group

2011

Group

2010

Group

2009

Group

2008

Group

2008 2012201120102009

3%

4%

-11

%

-12

%

8% 8%

14

%

14

%

14

%

16%

Operating Retrun on Equity

MARKET CAPITALISATION TO NET ASSETS( MVR MILLIONS )

2012 2008200920102011

254.5

1

57.5

0

224.5

8

66.2

5

38.9

2

248.2

4

25

5

29

3.4

8

45.0

0

326.8

2

66.7

5

Market Capitalisation (on average price) Net Assets

Business SegmentsThe core business units of MTCC are based in Male’ and

Thilafushi; and consist of 4 strategic business units, namely

Trading, Contracting, Transport (Male’ Region & North Central

Province) and others.

The Profit of the company is mainly generated from Trading

and Contracting segments. Continuous losses from Transport

segment in the past number of years including, 2012 also have

been compensated from the profits of Trading & Contracting

departments.

The operating profit contribution of the segments for the year are

Trading MVR 29,278,139 (2011: MVR 31,143,422), Contracting

MVR 59,630,286 (2011: 39,848,917), Transport - Male’ Region

MVR (15,696,841) (2011: MVR (12,412,967)), Transport – North

Central Province MVR (15,540,882) (2011: MVR (13,880,357)) and

others MVR (6,977,801) (2011: MVR (10,257,151)).

COMPOSITION OF SEGMENTAL REVENUE 2012

60%

C

on

tra

ctin

g

23%

Tr

ad

ing

13%

Tra

nsp

ort

( M

ale

' Reg

ion

)

1%

Tra

nsp

ort

( N

ort

h C

en

tra

l Pro

vin

ce)

4%

Oth

er

23%

60%

13%

4%

1%


TRADING

The products traded in this business unit cater mainly to the

marine market segment of the Maldives. The product range

covered includes Castrol lubricants, Yanmar Engines, Suzuki

Outboard Engines, Generators, Spare Parts, Himoinsa Gensets,

Hamilton Water Jets, Sigma marine and protective coating and

industrial gas. This business segment focuses on maintaining

its position in the target segments, whilst broadening its product

range by screening world markets for quality premium products.

Trading segment revenue has slightly decreased by 9.6% in 2012

compared to 2011, and the operating profit for the segment

also decreased by 6% in 2012 compared to 2011. The main

reason for the decrease is increase in competitors in the market.

Nevertheless, Trading segment has achieved a targeted operating

profit similar to the profit of 2011 even though there is a decrease

in revenue.

TRANSPORT NORTH

CENTRAL PROVINCE

OTHERCONTRACTING TRANSPORT MALE' REGION

TRADING

SEGMENT PROFIT / (LOSS) ( MVR MILLIONS )

2931

61

43

-12

-16

-16

-14

-7

-10

2011 2012

2012

29

SALES OPERATING PROFIT / (LOSS)

TRADING( MVR MILLIONS )

2008 201120102009

26

17

25 31

210

106

118 14

5

131

CONTRACTING

Contracting is the largest segment of the company in terms of

revenue generation. Its contribution to the total revenue of the

Company for 2012 is 60% (2011: 44%). The revenue generated

from this segment has increased significantly by 55% in 2012

compared to 2011, while operating profit has increased by 42%

during the year mainly due to on time completion of projects and

coordination from other supportive departments.

TRANSPORT (MALE’ REGION & NORTH CENTRAL PROVINCE)

Despite the fact that the company had incurred significant losses

in the past number of years from transport segment including

the net loss of 2012 amounting to MVR 15,696,841 (2011: MVR

12,412,967) from Male region and MVR 15,540,882 (2011:

13,880,357) from North Central Province, MTCC had never lost

its focus on providing sustainable and efficient services to our

customers.


CONTRACTING ( MVR MILLIONS )

2008 2012201120102009

66

30

8

43 6

1

354

260

155

224

347


TRANSPORTATION - NORTH CENTRAL PROVINCE

( MVR MILLIONS )

2012201120102009

0

0

-9

3

-14

5

-16

6

TRANSPORTATION - MALE’ REGION

( MVR MILLIONS )

2008 2012201120102009

-7 -8

-11

-12

-16

71 76

64

75

73

SEGMENT REVENUE ( MVR MILLIONS )

131

145

347

224

75

73

65

23

57

TRANSPORT NORTH

CENTRAL PROVINCE

OTHERCONTRACTING TRANSPORT MALE' REGION

TRADING

2011 2012


OTHER PRODUCTS AND SERVICES

Other products and services offered include Logistic Department

(Logistics Operations, Rental and Engineering operation) and

Building & Security Services Department.

Main activities under Logistic Operations Department include

providing logistic services to the Company, rental of construction

equipment and loading vehicles, auctioning service and

mechanical engineering services

Compared to the preceding year, in 2012, revenue has decreased

by MVR 34 Million and resulted in operating loss of MVR 6.9 Million.

Subsidiary CompanyMALDIVES REAL ESTATE INVESTMENT CORPORATION PRIVATE LIMITED

MREIC is a fully owned subsidiary of MTCC which was incorporated

and registered under Ministry of Trade on 09th April 2007.

COMPANY’S TRADING

The decision taken to discontinue and transfer all activities of

Maldives Real Estate Investment Corporation Pvt Ltd to the parent

company during the year 2010, was reversed during the year

under review. But, no trading activity was carried out by MREIC

during the year 2012.

AUDITOR’S OF THE COMPANY

The external auditors of the company is KPMG Ford Rhodes

Thornton and Co. The financial year of the company ends on 31st

December, in line with the parent company, MTCC.

OTHERS( MVR MILLIONS )

2008 2012201120102009

3

15

-14 -10 -7

50

31

41

57

23



The Company is led and controlled by the Board, which has overall

responsibility for the conduct of the business of the Company.

The Board is responsible for setting the strategic direction of

the Company and ensuring that it has adequate resources and

appropriate controls, values and standards in place to deliver its

strategies.

Similarly it is also the responsibility of the Board of Directors

to guide the Company in order to strengthen and sustain the

business and maximize the wealth of the shareholders.

The Board of Directors ensure that all the activities and obligations

of the company are carried out in a transparent and fair manner,

as per section 10/96 of the Company act, the company’s Articles

of Association and Memorandum of Association, Corporate

Governance Code, Continuing Disclosure Obligations of the

Issuer (CDOI) and Maldives Financial Securities Act and other

Business acts and regulations.

The role of shareholder in the operation of the Company is to elect

auditors for the Company and Directors to represent themselves in

the board, and ensure through these directors that the Company’s

operations are based on sound policies for the best interest of the

shareholders.

Listed below are the necessary steps taken by the Company to

ensure compliance with the policies in the Corporate Governance

Code.

BOARD OF DIRECTORS

Work was done by the Board of Directors to ensure that proper

policies are in place while also assisting in obtaining financial and

human resources required for the operation of the company such

that the objectives of the Company are achieved.

With the recent structural changes in place, the Board of Directors

had devised ways to cut down on operational costs while

strengthening the internal controls processes so as to ensure that

the resources of the company are utilized in the most productive

manner.

OVERALL RESPONSIBILITIES OF THE BOARD

The Board is responsible for the Company’s long-term development

and strategy. Other than the statutory tasks resolved in the Annual

General Meeting of the company under section 10/96 of the

Company act, the Articles of Association and Memorandum of

Association, Corporate Governance Code, Continuing Disclosure

Obligations of the Issuer (CDOI) and Maldives Financial Securities

Act, all other duties and responsibilities directly or indirectly

related in achieving the organizational goal and objectives of the

company lies with the Board of Directors.

In addition to that it is also a responsibility of the Directors to

protect and safeguard the interest of the Shareholders, determine

the operational and financial policies of the company, obtain the

basic investment need to achieve the objectives of the company,

maximize the wealth to shareholders, identify the risks to the

company and ensure strong internal controls are in place to

overcome these risks.

BOARD COMPOSITION

As per section 63 of Articles of Association of the Company,

the Board of Directors of the company consists of 10 directors.

With respect to the shareholdings of the Company, 6 directors

are appointed by the government and 4 elected by the public

shareholders. Should there be a change in the shareholding;

the composition stated above will also change accordingly to

reflect the change. Among the 10 directors, two directors must

be Executive Directors and the rest should be Non-Executive/

Independent Directors.

From 28th September 2010 till 9th February 2012, Mr.Husen

Amr, G.Hadhdhunmathee dhekunuge was the Chief Executive

Officer, and Dr.Ahmed Adham Abdulla was appointed as the Chief

Executive Officer from 4th April 2012 onwards.

Director Mr.Ameen Ibrahim, H.Haali and Mr.Ali Shafeeu

concluded their term in 2011 as directors representing the public

shareholders.

The following candidates were nominated at the Annual General

Meeting of 2011, for the vacant positions.

1. Ms.Mariyam Fiyaza, G.Green Villa

2. Ms.Aishath Hussain Manik, H.Reendhoo kokaa

3. Mr. Ali Shafeeu, M.Hudhukaneeruge

4. Mr.Mohamed Imran Adnan, M.Mainz

5. Mr.Hussain Haaly, H.Iruvai

The Annual General Meeting 2011 elected Mr. Ali Shafeeu,

M.Hudhukaneeruge and Mr.Hussain Haaly, H.Iruvai as Directors

representing the public shareholders in the Board.

Director, Mr.Abdulla Said, appointed by the Board of Directors to

represent MTCC in the Board of Directors of Maldives Finance

Leasing Company Pvt Ltd was removed from the Directorship on

06th May 2012 and Director and Chief Executive Officer Dr.Ahmed

Adham Abdulla was appointed.

Chief Executive Officer, Dr.Ahmed Adham Abdulla and Director,

Mr. Mujthaba Jaleel were appointed to represent the Company in

Airports Investment Maldives Pvt Ltd board.

Corporate Governance Report


THE BOARD OF DIRECTORS AT THE END OF YEAR 2012 WAS:

Ms. Aminath Athifa Chairperson (appointed by the Government/ Independent)

Dr. Ahmed Adham Abdulla CEO

(appointed by the Government/ Executive)

Mr. Mohamed Ali Director (appointed by the Government/ Non-Executive)

Mr. Imran Wajdi Director (appointed by the Government/ Independent)

Mr. Ihusaan Shareef Executive Director (appointed by the Government/ Executive)

Mr. Mujuthaba Jaleel Director (elected by shareholders/ independent)

Mr. Hussain Haaly Director (elected by shareholders/ independent)

Mr. Mansoor Zubair Director (elected by shareholders/ independent)

Mr. Ali Shafeeu Director (elected by shareholders/ independent)

CHANGES TO THE BOARD DURING 2012

Mr. Hussain Hilmy / MA.Vahaari (Was appointed by Government and removed on 09 February 2012)

Mr. Husen Amr / G.Hadhdhunmathee dhekunuge (Was appointed by Government and removed on 09 February 2012)

Mr. Abbas Mohamed / M.Aa alimas (Was appointed by Government and removed on 12 February 2012)

Mr. Abdulla Shaair / M.Furahani aage (Was appointed by Government and removed on 08 April 2012)

Mr. Mohamed Nizam / G.Green lean (Was appointed by Government and removed on 08 April 2012)

Mr. Abdulla Said /Handhuvarudheyge, Gn.Fuahmulah (Was appointed by Government and removed on 06 May 2012)

Ms. Aminath Athifa / M.Aasthaana (Appointed by the Government on 06 May 2012)

Mr. Ahmed Adham Abdulla / Ma.Maaveyoge (Appointed by the Government on 04 April 2012)

Mr. Mohamed Ali / H.Keeranmaage (Appointed by the Government on 06 May 2012)

Mr. Imran Wajdi / Zikuraa, S.Maradhoo (Appointed by the Government on 06 May 2012)

Mr. Ismail Fariq / M.Florance (Was appointed by Government on 07 May 2012 and removed on 02 July 2012)

Mr. Ameen Ibrahim / H.Haali (Resigned on 30 July 2012)

Mr. Ali Shafeeu / M.Hudhukaneeruge (Was re-elected by the shareholders on 30 July 2012)

Mr. Hussain Haaly / H.Iruvai (Was re-elected by the shareholders on 30 July 2012)

Mr. Ihusaan Shareef / H.Orchid (Appointed by the Government on 26 August 2012)

THE CURRENT BOARD DIRECTORS OF THE

COMPANY AND THEIR SHARES WITH MTCC

Name Designation No.of Shares

1. Ms. Aminath Athifa Chairperson

13 shares

(Appointed by the Government/ independent)

2. Dr. Ahmed Adham Abdulla CEO

No share

(Appointed by the Government/ Executive)

3. Mr. Mohamed Ali Director

1 share

(Appointed by the Government/ Non-Executive)

4. Mr. Imran Wajdi Director

No share


5. Mr.Ihusaan Shareef Executive Director

No share

(Appointed by the Government/ Executive)

6. Mr. Mujthaba Jaleel Director

17 shares

(Elected by shareholders/ independent)

7. Mr. Hussain Haaly Director

2 shares

(elected by shareholders/ independent)

8. Mr. Mansoor Zubair Director

2 shares

(Elected by shareholders/ independent)

9. Mr. Ali Shafeeu Director

1 share

(Elected by shareholders/ independent

10. Mr. Mohamed Nabeel Director

No share


The shares held by the Directors of the Company are acquired by

them on their personal capacity.


Role of Chairperson & CEOAs per the Corporate Governance Code and section 80 of the

Articles of Association of the Company, the Chairperson and

the Chief Executive Officer of the Company are two separate

individuals and do not have any business or family relation

between them.

ROLE OF THE CHAIRPERSON

The overall responsibility of the Chairperson is to provide

information to the Board of Directors and the Shareholders with

regard to the operations of the Company.

Responsibilities of the Chairperson include;

• Lead the Board to ensure its effectiveness on all aspects of its

role and set its agenda;

• Ensure that the directors receive accurate, timely and clear

information;

• Encourage constructive relations between the Board and

Management;

• Facilitate the effective contribution of non-executive directors

in particular during and outside of Board meetings;

• Encourage constructive relations between executive directors

and non-executive directors;

• Not to unilaterally issue policies without consulting with the

Board as a whole with full frank and discussions being

completed, and

• Ensure effective communication with shareholders;

• Promote high standards of corporate governance.

ROLE OF CHIEF EXECUTIVE OFFICER

Chief Executive Officer is responsible to manage the day-to-day

management of the operational activities of the Company in

accordance with the overall strategy and policy as determined by

the Board.

DIRECTOR’S ATTENDANCEDuring 2012, 23 Board meetings were held. The Director’s

attendance for the meetings is as follows;

Directors No. of Meetings No. of Meetings to Attend Attended

Mr. Hussain Hilmy 1 1

Mr. Husen Amr 1 1

Mr. Abbas Mohamed 1 1

Mr. Abdulla Shaair 1 1

Mr. Mohamed Nizam 1 1

Mr. Abdulla Saaid 1 1

Ms. Aminath Athifa 22 22

Dr. Ahmed Adham Abdulla 22 22

Mr. Mohamed Ali 22 20

Mr. Imran Wajdi 22 21

Mr. Ismail Fariq 7 7

Mr. Ameen Ibrahim 11 9

Mr. Ali Shafeeu 23 18

Mr. Mansoor Zubair 23 20

Mr. Mujthaba Jaleel 23 19

Mr. Hussain Haaly 12 10

Mr. Ihusaan Shareef 8 6

BOARD’S WORK 2012

An analysis was done to identify the amount of money the company

should receive from different government authorities and met with the

Minister of Finance and Treasury and Public Enterprise Monitoring

and Evaluation Board to negotiate ways to settle these amounts.

The Board of Directors approved to sign the agreement to develop

Th.Thimarafushi domestic airport project.

The Board of Maldives Real Estate Investment Corporation Pvt Ltd

was reformulated.

The Board of Directors approved to improve the ferry service by

introducing Automatic Fair Collection System and premium ferry, car

and bus services.

Decisions were taken by the Board of Directors to buy tug and barge

and slipway airbag required for the Logistical Operations Department

and also to buy the equipment for the Construction and Projects

Management Department.

In order to develop MTCC Plaza, the Board of Directors decided to

close down the rental service provided by the Logistical Operations

Department, relocate the usable goods to other departments and sell

out the rest of the goods.

The Board of Directors approved to participate in the bidding of 12

projects during the year. Among these 12 projects, 10 projects were

related to Construction segment, while the rest were related to the

Trading segment.

The Board of Directors approved to further develop, MTCC Building,

Rentals Plaza and ferry terminals.

THE BOARD’S COMMITTEES

In accordance with the provisions of the Articles of Association

and Corporate Governance Code, the Board has established three

standing committees namely Nominating Committee, Remuneration

Committee and Audit Committee.

The responsibilities of these committees are set out in a charter

as approved by the Board of Directors. Responsibilities of these

committees are also provided in the Articles of Association of the

Company.


Audit Committee Report The Audit Committee met on nineteen occasions during 2012.

The attendance of Board members at Committee meetings is

presented below;

As per the Articles of Association, the Audit Committee comprises

of four directors. Out of these, 3 directors are independent/ non-

executive directors and these members’ have immense experience

and knowledge in analyzing financial statements and situations.


Mr. Abdulla Saaid 5 4


Mr. Ali Shafeeu 19 15

Mr. Mujthaba Jaleel 19 18

Mr. Mohamed Ali 14 13

Mr. Abdulla Saaid was the chairman of this committee from 10th

October 2011 to 06 May 2012. From 14th May 2012 onwards Mr.

Mujthaba Jaleel assumed the position of the chairman.

DUTIES AND RESPONSIBILITIES OF THE AUDIT

COMMITTEE

• Reviewing and monitoring the Internal Risk Controls and Risk

Management Systems

• Monitoring the integrity of the information in the Annual reports

and financial statements of the Company.

• Reviewing the Accounting policies of the company and

changes made to these policies and ensure that that these

policies are as per the applicable reporting standards.

• Monitoring the effectiveness, independence and objectivity of

the internal and external Auditor of the Company.

• Reviewing the audit plans and reports issued by the internal

auditors, follow up actions on the recommendations made

and ensure that adequate resources are available to the

internal auditors to perform their responsibilities.

• Ensuring that proper mechanisms are in place to maintain the

financial records of the Company.

WORK IN 2012

During 2012 the main focus of the audit committee was on

improving the financial status of the Company. Hence respective

recommendations were passed to the Board and the Management

on the capital investments, and necessary steps that should be

taken in improving the business segments and the financial status

of the Company.

Recommendations were also passed to the Board on 2012

quarterly financial performance and 2011 annual financial

performance.

Additionally special instructions were given to the Board and

Management on verifying and valuing the assets of the company.

With regard to the tax regulation imposed on 2012, discussions

were made for finding solutions on the operations of collecting

GST from ferry service whereby respective recommendations

were made available to the Board and the Management of the

Company.

Revisions were made to the procurement policy and

recommendations were passed onto the board. Additionally work

was done on reviewing the business plan and budget for 2013.

The Chief Executive Officer, Financial Controller, External Auditor

and Internal Auditor participated in relevant audit committee

meetings.

Mujuthaba Jaleel

Chairman, Audit Committee

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Remuneration Committee Report The remuneration Committee met on three occasions during 2012.

Mr. Ameen Ibrahim was the chairman of this committee from 28th

April 2009 to 30 July 2012. From 22nd November 2012 onwards

Mr. Hussain Haaly assumed the position of the chairman.

The attendance of Board Members at Committee meetings is

presented below;

As per the Articles of Association, the Remuneration Committee

comprises of four directors exclusive of the Executive Directors.

Out of these, 3 directors are independent/ non-executive directors.





Mr. Imran Wajdi 3 3

DUTIES AND RESPONSIBILITIES OF THE

REMUNERATION COMMITTEE

• Reviewing overall remuneration policy of the Board of

Directors and Senior Management.

• Reviewing and advising the Board on the remuneration and

benefits provided by the Company

• Determining and advising the Board on the bonus structure

of the Company, Employment Contracts, and Provisions for

termination of employees.

• Determining and reviewing the overall remuneration and

benefits of the Board of Directors and key employees with

regard to attracting, retaining and motivating directors and

key management of the experience and caliber required by the

Company.

WORKS IN 2012

The tasks carried out by the committee during the year relating

to the human resource of the company include, formulation of

the overtime policy, training need analysis and evaluation of the

Human Resources Information System (HR) Software to identify if

it fulfills the requirement of the company.

The Committee also worked on reformulating the staff recruitment

policy, as well as made recommendations to the management on

the retirement policy.

Hussain Haaly

Chairman, Remuneration Committee

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Nominating Committee Report The Nominating Committee met on four occasions during 2012.

The attendance of Board members at Committee meetings is

presented below;

Mr. Ameen Ibrahim was the chairman of this committee from 28th

April 2009 to 30 July 2012. From 22nd November 2012 onwards

Mr. Hussain Haaly assumed the position of the chairman.

As per the Articles of Association, the Nominating Committee

comprises of four directors exclusive of the Executive Directors.

Out of these, 3 directors are independent/ non-executive directors.





Mr. Imran Wajdi 4 4

DUTIES AND RESPONSIBILITIES OF THE

NOMINATING COMMITTEE

• Regularly reviewing the structure, size and composition of the

Board of Directors having regard to their balance of skills.

• Reviewing and making recommendations to the Board on the

conflict of Interest of any of the Directors of the Board with

another Company or personal business interest of the

Director.

• Identifying and nominating candidates to the Board vacancies

and evaluating the role and capabilities required for the

particular appointment.

• Reviewing and making recommendations to the Board on the

policies of the Corporate Governance Code complied by the

Company and any amendments to them.

• Evaluating Board and Board committees to ensure that the

responsibilities of the board are adequately performed.

WORK IN 2012

The works carried out by the nomination committee include

evaluating of the candidates for the public directorship and the

directors appointed by the government based on the Company

and Corporate Governance Code.

In addition to this, recommendations were made to the Board on

possible conflict of interest of Directors with the businesses of the

Company.

Hussain Haaly

Chairman, Nominating Committee

DIRECTOR’S REMUNERATION

The salary and benefits of the Directors are set in accordance with

section 73 of Articles of Association of the company. Directors

are paid a monthly remuneration of Mrf 8,000.00 and sitting fee

of Mrf500.00 for every Board and Committee meeting attended.

Salary and benefits are allocated with a fixed ceiling Mrf 10,000.00

per month.

During the year 2011, Mrf 742,067.00 was paid to Directors as

salary and allowances. Under the Corporate Governance Code

2.4, following are the details of salary and benefits given to the

board directors in 2012.

Even though the Corporate Governance Code 2.4, says that

the salary and benefit of the senior /top management should

be disclosed, it has been decided by the board directors not to

disclose this information as it is sensitive to the business and the

job market.

Name DesignationType of Director Salary & Benefit Duration

Mr. Hussain Hilmy Chairman Government MRF 8,565.52 till 9th February 2012

Mr. Husen Amr C.E.O Government MRF 8,565.52 till 9th February 2012

Mr.Abbas Mohamed Director Government MRF 9,227.59 till 12th February 2012

Mr. Abdulla Shaair Director Government MRF 21,093.33 till 8th April 2012

Mr. Mohamed Nizam Director Government MRF 21,093.33 till 8th April 2012

Mr. Abdulla Saaid Director Government MRF 28,632.26 till 6th May 2012

Mr. Ismail Fariq Director Government MRF 14,774.19 till 12th July 2012

Mr. Ameen Ibrahim Director Independent MRF 49,587.10 till 30th July 2012

Ms. Aminath Athifa Chairperson Government MRF 58,967.74 from 6th May 2012

Dr. Ahmed Adham Abdulla C.E.O Government MRF 65,973.33 from 4th April 2012

Mr. Mohamed Ali Director Government MRF 61,367.74 from 6th May 2012

Mr. Imran Wajdi Director Government MRF 60,567.74 from 6th May 2012

Mr. Ihusaan Shareef Executive Director Government MRF 29,238.71 from 26th August 2012

Mr. Mujthaba Jaleel Director Independent MRF 88,800.00 till 31st December 2012

Mr. Hussain Haaly Director Independent MRF 37,612.90 from 30th July 2012

Mr. Mansoor Zubair Director Independent MRF 90,400.00 till 31st December 2012

Mr. Ali Shafeeu Director Independent MRF 87,600.00 till 31st December 2012

Director's remuneration in year 2013:


GRIEVANCE COMMITTEE

Grievance Committee analyses the grievances of employees

of the Company and consists of directors from the Board and

Heads of some departments. No meeting of this committee was

convened during the year under review.

DISCLOSURE OF DIRECTOR’S INDEPENDENCE AND CONFLICT OF INTEREST

There was no right given to any Director or the Chief Executive

Officer of the Company to buy shares or debt security from the

Company or its subsidiary.

During 2011, there is no agreement between any Director of the

company or the subsidiary in which there is a direct or indirect

conflict of interest.

According to section 76 of the Articles of Association, the Directors

have a duty to avoid a situation in which they have, or may have a

direct on indirect conflict of interest or possible conflict of interest

with the Company.

There are no service agreements with the candidates for public

directorship in the upcoming Annual General Meeting of the

Company.

DIRECTOR’S EVALUATION

During the year 2012 the Company’s board of directors were not

evaluated as work was done to develop a policy to evaluate the

board directors.

DIRECTOR’S TRAINING

An awareness session on Corporate Governance was conducted

in collaboration with Capital Market Development Authority to the

new directors elected to the board during the year. The directors

also participated in the “Corporate Directors Training” and “Islamic

Finance Awareness” programme conducted by the Institute of

Corporate Directors and Secretaries.

MANAGEMENT OF THE COMPANY

The Management comprises of the Chief Executive Officer in

charge, and Chief Operating Officer to run the day-day activities

of the Company along with the Chief Financial Officer, Executives,

Assistant Financial Controller and Senior Management.

RELATIONSHIP WITH SHAREHOLDERS

The Company places a high priority on communications with

and accountability to shareholders. The Board recognizes that

shareholders, as the ultimate owners of the Company, are entitled

to receive timely and relevant high quality information about their

investment. Similarly, prospective investors should be able to

make an informed decision when considering the purchase of

shares in MTCC.

Information about the Company and its businesses, the Board

of Directors, Financial and Investor Related information of the

Company and announcements for the shareholders can be found

on the Company’s website.

Additionally, shareholders are encouraged to attend Annual

General Meetings and question the Board of Directors and the

Management and share their views with regard to the business

and management of the Company.

The Company fully supports the principals of the Continuing

Disclosure Obligations of the Issuers of Capital Market

Development Authority.

INTERNAL AUDIT

During the year internal audits were conducted by the Company’s

Financial and Internal Audit Department and by KPMG Ford

Rhodes Thornton and Co.

The Financial and Internal Audit Department reports functionally

to the Audit Committee and administratively to the Chief Executive

Officer.

EXTERNAL AUDIT

With the approval of shareholders In the Annual General Meeting

of 2011, PriceWaterhouseCoopers was appointed as the External

Auditor for 2012. The Auditors extended no other service to the

Company during the year apart from the auditing service.

INTERNAL CONTROLS

Perceiving the importance of strengthening the future

developments and expansion of the Company, the current

businesses were reviewed and modifications were made where

necessary. Underperforming segments of the company were

identified and monitored while corrective actions were made to

improve the operations. Similarly, the Board monitored that the

Company maintained sound internal controls. During the year,

internal controls were strengthened to make them more robust in

view to safeguard the assets of the company.

Furthermore, work was done by the Management to develop a

Whistle-Blowing Policy, Conflict of Interests Policy and Price

Sensitive Information Disclosure Policy.


FUTURE

It is the determination of Team MTCC to build trust between our

shareholders, customers and suppliers and understand the

challenges faced by the company and overcome these obstacles

to sustain firmly in a competitive business environment and

maximize the wealth of our shareholders.

ACKNOWLEDGEMENT

Heartfelt gratitude and thanks is extended to the shareholders of

the company, the Board of Directors who has spent

numerous time and effort for the best interest of the Company and

guided the Company in all aspects of the operation and the loyal

customers of the Company. And a very special thanks to devoted

and capable employees of the company who are the reason of

every success the company had achieved.

We thank Mr. Ameen Ibrahim who had resigned as a Board

Director and Chairman of Remuneration and Nominating

Committee, for his numerous contribution and guidance extended

to the Company. We also thank Mr.Ismail Fariq for the guidance

and recommendations extended during his directorship in the

Board of the Company.

The Directors Report of Maldives Transport and Contracting

Company Plc and the Financial Statement of the Company as at

31st December 2012 and the Audit Report was endorsed by the

board on 24th April 2013.

24 April 2013

Aminath Athifa Dr. Ahmed Adham Abdulla

Chairperson Chief Executive Officer

SOCIAL RESPONSIBILITY

MTCC believes in continuing its contribution as a socially

responsible Company. The Company has been contributing to the

society in the past and MTCC will continue its efforts to further

contribute to social issues for the benefit of the community.

Whilst the Company’s projects are distributed throughout the

nation, various request from the Province offices and local

institutes for the development of the community was attended with

involvement of the community as a corporate social responsibility.

Since 2007, MTCC has been sponsoring two teachers in

Kudakudhinge Hiyaa at Vilimale. In addition to that, various

financial assistances were provided to schools and Voluntary

institutions. A special ferry transportation service from Male’-

Hulhule-Male’ was arranged to the pilgrim’s and their family, free

of charge.

DECLERATION OF THE BOARD OF DIRCETORS

The Board of Directors, Management and employees of the

company have worked to manage the Company in accordance

with the Corporate Governance Code, Listing Rules, Securities Act

and the Company Act, ensuring that the activities and obligations

of the company are carried out in a transparent and fair manner.

It is the responsibility of Directors to ensure that the Annual Report

and the Financial Statement of the Company are prepared in

accordance with the International Reporting Standards, Company

Act, Corporate Governance Code and other reporting regulations.

The information in this annual report reflects the true and fair

picture of the performance of the Company during the past year.

The Chief Executive Officer and Chief Financial Officer has signed

the declaration that the Profit and Loss statement, Balance sheet,

changes to the equity of the shareholders and receivables and

payables are prepared in accordance with the International

Financial Reporting Standards.

The financial statements of the Company are prepared with the

assumption that the company has the potential to continue its

business as a going concern.

It is witnessed that there is no major post balance sheet activity

and disclosure will be made for any activity that is not in line with

the reporting standards.


Financial Statements


Financial Highlights

Million Rifyaa27

REVENUE & NET PROFIT

MVR Millions

26

-12

-14

-48

-49

-8 -8

27

2734

474

473

381

381

505

505 5

79

579

684

684

Revenue Net Profi t (before extra-ordinary items)2012

Group

2011

Group

2010

Group

2009

Group

2008Group

2008 2012201120102009

Revenue Net Profi t (before extra-ordinary items)

Million Rifyaa37

REVENUE & OPERATING PROFIT

MVR Millions

45

10

8

-28

-29 1

9

19 37

375

3

474

473

381

381

505

505 5

79

579

684

684

2012

Group

2011

Group

2010

Group

2009

Group

2008Group

2008 2012201120102009

REVENUE &GROSS PROFIT

MVR Millions

Revenue Net Profi t (before extra-ordinary items)

Million Rifyaa

141

109

108

31

31 7

8

78 90

90 901

41

474

473

381

381

505

505 5

79

579

684

684

2012

Group

2011

Group

2010

Group

2009

Group

2008Group

2008 2012201120102009


Million Rifyaa634Total Corporate Debt Total Assets

TOTAL CORPORATE DEBT & TOTAL

ASSETS MVR Millions

779

662 7

24

608

600 6

83

675

642

634

718

35

8 431

35

2

35

2

450

450

379

3794

52

382

2012

Group

2011

Group

2010

Group

2009

Group

2008Group

2008 2012201120102009

Million Rifyaa255Shareholders Funds Total Assets

SHAREHOLDERS FUNDS & TOTAL

ASSETSMVR Millions

779

662 7

24

608

600 6

83

675

642

6347

18

304

293

256

248

233

225 263

2553

27

336

2012

Group

2011

Group

2010

Group

2009

Group

2008Group

2008 2012201120102009


FINANCIAL HIGHLIGHTS OF 10 YEARS

GROUP GROUP GROUP GROUP GROUP GROUP

( MVR MILLIONS ) 2012 2012 2011 2011 2010 2010 2009 2009 2008 2008 2007 2007 2006 2005 2004 2003

Sales 579.20 579.21 505.08 505.08 381.10 381.10 473.43 474.34 684.44 684.34 563.96 563.96 397.70 357.69 304.49 345.10

Cost of Sales 489.27 489.27 427.46 427.46 350.01 349.99 365.64 365.35 543.50 543.44 450.00 449.97 306.08 281.40 248.34 280.06

Gross Profit 89.93 89.93 77.62 77.62 31.09 31.11 107.79 108.99 140.94 140.90 113.96 113.99 91.62 76.29 56.15 65.04

Expenses and Other Income (net)

53.14 53.12 58.90 58.88 59.81 59.59 99.30 98.59 96.16 88.09 77.16 76.50 48.49 39.66 33.97 42.78

Operating Profit 36.79 36.81 18.71 18.73 (28.72) (28.48) 8.49 10.40 44.78 52.81 36.80 37.49 43.13 36.63 22.18 22.26

Financing Cost 10.27 10.27 24.37 24.37 19.48 19.48 22.75 22.75 19.04 19.04 0.39 0.39 2.19 2.13 2.71 6.96

Net Profit 26.52 26.54 (5.66) (5.64) (48.20) (47.96) (14.26) (12.35) 25.74 33.77 36.41 37.10 40.94 34.49 19.47 15.30

Extraordinary Items - - 2.52 2.52 0.40 0.40 - - - - - - - - - 23.77

Business Profit Tax 2.51 2.51 0.14 0.14 - - - - - - - - - - - -

Net Profit 24.01 24.03 (8.32) (8.29) (48.60) (48.36) (14.26) (12.35) 25.74 33.77 36.41 37.10 40.94 34.49 19.47 39.07

( MVR MILLIONS )

Non- Current Assets 210.43 217.54 204.74 210.59 263.57 269.42 384.84 322.86 417.88 358.09 420.35 366.53 215.71 174.66 167.39 180.10

Current Assets 423.13 424.03 470.14 472.27 336.87 339.00 339.36 338.91 361.16 359.52 310.62 293.73 175.67 155.01 154.39 136.35

Total Assets 633.56 641.57 674.88 682.86 600.44 608.42 724.20 661.77 779.04 717.61 730.97 660.26 391.38 329.67 321.78 316.45

( MVR MILLIONS )

Borrowings 22.17 22.17 11.47 11.47 28.77 28.77 45.66 45.66 69.39 69.39 24.56 24.56 27.65 23.24 32.12 47.99

Non- Current Liabilities 69.24 69.24 - - 34.12 34.12 81.11 4.43 77.45 5.06 72.39 - - - - -

Current Liabilities 287.64 287.63 438.83 438.81 289.31 289.31 303.95 307.56 305.39 307.63 300.89 301.86 102.18 78.62 92.38 84.97

Total Liabilities 379.05 379.04 450.30 450.28 352.20 352.20 430.71 357.65 452.23 382.08 397.84 326.42 129.83 101.86 124.50 132.96

Working Capital (millions) 135.49 136.40 31.32 33.46 47.56 49.68 35.40 31.35 55.77 51.90 9.73 (8.13) 73.49 76.39 62.01 51.38

Net Assets (millions) 254.51 262.53 224.58 232.58 248.24 256.21 293.48 304.12 326.82 335.54 333.13 333.84 261.55 227.81 197.28 183.49

Gross Profit Ratio 15.53% 15.53% 15.37% 15.37% 8.16% 8.16% 22.77% 22.98% 20.59% 20.59% 20.21% 20.21% 23.04% 21.33% 18.44% 18.85%

Net Profit Ratio 4.15% 4.15% -1.65% -1.64% -12.75% -12.69% -3.01% -2.60% 3.76% 4.93% 6.46% 6.58% 10.29% 9.64% 6.39% 11.32%

Earnings Per Share (MVR) 96.04 96.13 (33.26) (33.18) (194.40) (193.44) (57.04) (49.40) 102.96 135.06 145.64 148.40 163.76 137.96 77.88 156.28

Dividend Per Share (MVR) - - - - - - 10.00 10.00 50.00 50.00 45.00 45.00 35.00 30.00 25.00 27.00

Share Capital (Millions) 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50 12.50

Net Assets Value per Share (MVR)

1,018 1,050 898 930 993 1,025 1,174 1,216 1,307 1,342 1,333 1,335 1,046 911 789 734

Return on Equity (ROE) 9.43% 9.15% -3.70% -3.57% -19.58% -18.87% -4.86% -4.06% 7.88% 10.06% 10.93% 11.11% 15.65% 15.14% 9.87% 21.29%

Gearing Ratio (Long Term Debt to Equity)

8.71% 8.44% 5.11% 4.93% 11.59% 11.23% 15.56% 15.01% 21.23% 20.68% 7.37% 7.36% 10.57% 10.20% 16.28% 26.15%


AUDITOR'S REPORT

1. We have audited the accompanying financial statements of

Maldives Transport and Contracting Company Plc (the Company)

and its subsidiary (the Group) which comprise the balance sheet

as of 31 December 2012, and the income statement, statement

of changes in equity and cash flow statement for the year then

ended, and a summary of significant accounting policies and other

explanatory notes.

MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS

2. Management is responsible for the preparation and fair

presentation of these financial statements in accordance with

International Financial Reporting Standards, requirements of the

Companies Act, No. 10/96, of the Republic of Maldives and for such

internal control as management determines is necessary to enable

the preparation of financial statements that are free from material

misstatement, whether due to fraud or error.

AUDITOR’S RESPONSIBILITY

3. Our responsibility is to express an opinion on these financial

statements based on our audit. We conducted our audit in

accordance with International Standards on Auditing. Those

Standards require that we comply with ethical requirements and

plan and perform the audit to obtain reasonable assurance whether

the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence

about the amounts and disclosures in the financial statements. The

procedures selected depend on the auditor’s judgment, including

the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk

assessments, the auditor considers internal control relevant to the

entity’s preparation and fair presentation of the financial statements

in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion

on the effectiveness of the entity’s internal control. An audit also

includes evaluating the appropriateness of accounting policies

used and the reasonableness of accounting estimates made by

management, as well as evaluating the overall presentation of the

financial statements.

We believe that the audit evidence we have obtained is sufficient

and appropriate to provide a basis for our audit opinion.

OPINION

4. In our opinion, the financial statements give a true and fair view

of the financial position of the Company as of 31 December 2012

and of its financial performance and its cash flows for the year

then ended in accordance with International Financial Reporting

Standards and with the requirements of the Companies Act No.

10/96, of the Republic of Maldives.

5. In our opinion, the accompanying financial statements give a

true and fair view of the financial position of the Group as of 31

December 2012 and of its financial performance and its cash flows

for the year then ended in accordance with International Financial

Reporting Standards and with the requirements of the Companies

Act No. 10/96, of the Republic of Maldives.

MALE’ CHARTERED ACCOUNTANTS

TO THE SHAREHOLDERS AND BOARD OF DIRECTORS OF MALDIVES TRANSPORT AND CONTRACTING COMPANY PLC


CONSOLIDATED BALANCE SHEETGROUP COMPANY

Note 2012 2011 2012 2011

ASSETS

Non-current assets

Property, plant and equipment 6 187,869,238 183,686,812 187,869,238 183,686,812

Intangible assets 7 219,561 735,614 219,561 735,614

Capital work-in-progress 8 270,476 1,233,204 270,476 1,233,204

Assets held for sale 9 164,346 1,836,009 164,346 1,836,009

Investment in associate 10 - - - -

Investment in subsidiary 10 - - 7,102,500 7,102,500

Available-for-sale financial assets 11 21,909,601 15,994,008 21,909,601 15,994,008

210,433,222 203,485,647 217,535,722 210,588,147

Current assets

Inventories 13 123,023,027 125,625,236 121,773,289 124,375,498

Trade and other receivables 12 266,578,080 269,728,573 269,233,151 272,362,138

Cash and cash equivalents 14 33,528,118 76,039,943 33,022,528 75,534,353

423,129,225 471,393,752 424,028,968 472,271,989

Total assets 633,562,447 674,879,399 641,564,690 682,860,136

EQUITY AND LIABILITIES

Equity

Capital and reserves attributable to equity holders of the Company

Share capital 15 12,500,000 12,500,000 12,500,000 12,500,000

General reserve 149,539,082 149,539,082 149,539,082 149,539,082

Fair value reserve 19,520,299 13,604,706 19,520,299 13,604,706

Retained earnings 72,948,728 48,939,119 80,967,318 56,935,276

Total equity 254,508,109 224,582,907 262,526,699 232,579,064

Liabilities

Non-current liabilities

Borrowings 16 22,167,683 11,470,827 22,167,683 11,470,827

Loan from a shareholder 17 69,244,747 - 69,244,747 -

91,412,430 11,470,827 91,412,430 11,470,827

Current liabilities

Current business profit tax payable 1,832,480 136,584 1,832,480 136,584

Loan from a shareholder 17 8,051,715 - 8,051,715 -

Trade and other payables 18 177,328,390 273,685,389 177,312,043 273,669,969

Borrowings 16 100,429,323 165,003,692 100,429,323 165,003,692

287,641,908 438,825,665 287,625,561 438,810,245

Total liabilities 379,054,338 450,296,492 379,037,991 450,281,072

Total equity and liabilities 633,562,447 674,879,399 641,564,690 682,860,136

These financial statements were approved by the Board of Directors on 25 April 2013

Aminath Athifa Dr. Ahmed Adham Abdulla Mohamed Hilmy Chairperson Chief Executive Officer Chief Financial Officer

The accounting policies and notes on pages 42 through 62 from an integral part of the financial statements.

All amounts in Maldivian Rufiyaa

Consolidated Financial Statements at 31 December 2012


CONSOLIDATED INCOME STATEMENT

GROUP COMPANY

Note 2012 2011 2012 2011

Revenue 5 579,204,606 505,076,299 579,204,606 505,076,299

Cost of sales 20 (489,271,004) (427,460,932) (489,271,004) (427,460,932)

Gross profit 89,933,602 77,615,367 89,933,602 77,615,367

Selling and marketing costs 20 (2,403,938) (2,112,001) (2,403,938) (2,112,001)

Administrative expenses 20 (54,319,320) (52,146,913) (54,296,888) (52,126,993)

Other income 19 18,153,518 17,865,687 18,153,518 17,865,687

Other operating expenses 20 (14,573,579) (22,509,380) (14,573,579) (22,509,380)

Operating profit 36,790,283 18,712,760 36,812,715 18,732,680

Finance costs 22 (10,271,933) (24,370,542) (10,271,933) (24,370,542)

Share of loss from associate / impairment of investment in associate

10 - (2,521,727) - (2,521,727)

Profit/(loss) before tax 26,518,351 (8,179,509) 26,540,783 (8,159,589)

Business profit tax 23 (2,508,741) (136,584) (2,508,741) (136,584)

Profit/(loss) after tax 24,009,610 (8,316,093) 24,032,042 (8,296,173)

Earnings/(loss) per share for loss attributable to the

equity holders of the Company during the year

(expressed in MVR per share) - basic

24 96.04 (33.26) 96.13 (33.18)


20122012

579,204,606

(489,271,004)

89,933,602

(2,403,938)

(54,296,888)

18,153,518

(14,573,579)

36,812,715

(10,271,933)

-

26,540,783

(2,508,741)

24,032,042

96.13

20122012

579,204,606

(489,271,004)

89,933,602

(2,403,938)

(54,319,320)

18,153,518

(14,573,579)

36,790,283

(10,271,933)

-

26,518,351

(2,508,741)

24,009,610

96.04




Balance at 1 January 2011

As previously reported- 12,500,000 149,539,082 28,941,426 110,147,546 301,128,054

Correction of erroneous recognition ofconstruction contract and logistic revenue - - - (42,437,824) (42,437,824)

Unrecognised impairment loss of investmentin associate for 2010 - - - (397,625) (397,625)

Adjustment for restatement of retained earnings arising from the impairment ofinvestment in associate

- - - (2,080,648) (2,080,648)

Rectification of understatement of capitalwork-in-progress earlier - - - - -

As restated 12,500,000 149,539,082 28,941,426 65,231,449 256,211,957

Net fair value loss on available-for-salefinancial assets

- - (15,336,720) - (15,336,720)

Loss for the year - - - (8,296,173) (8,296,173)

Balance at 31 December 2011 12,500,000 149,539,082 13,604,706 56,935,276 232,579,064

Balance at 1 January 2012 12,500,000 149,539,082 13,604,706 56,935,276 232,579,064

Net fair value gain on available-for-sale financial assets

11 - - 5,915,593 - 5,915,593

Net profit for the year - - - 24,032,042 24,032,042


Note Share capital General and

other reserves Fair value andother reserves

RetainedEarnings

Total

Balance at 1 January 2011

As previously reported- 12,500,000 149,539,082 28,941,426 89,967,722 280,948,230

Correction of erroneous recognition ofconstruction contract and logistic revenue

- - - (33,531,123) (33,531,123)

Unrecognised impairment loss of investmentin associate for 2010 - - - - -

Adjustment for restatement of retained earnings arising from the impairment ofinvestment in associate

- - - - -

Rectification of understatement of capitalwork-in-progress earlier - - - 818,613 818,613

As restated 12,500,000 149,539,082 28,941,426 57,255,212 248,235,720

Net fair value loss on available-for-salefinancial assets - - (15,336,720) - (15,336,720)

Loss for the year - - - (8,316,093) (8,316,093)


Balance at 1 January 2012 12,500,000 149,539,082 13,604,706 48,939,119 224,582,907

Net fair value gain on available-for-sale financial assets

11 - - 5,915,593 - 5,915,593

Net profit for the year - - - 24,009,610 24,009,610


CONSOLIDATED STATEMENT OF CHANGES IN EQUITYGROUP

COMPANY





CONSOLIDATED CASH FLOW STATEMENT

GROUP COMPANY

Note 2012 2011 2012 2011

Cash flows from operating activities

Cash generated from/(used in) operations 25 72,165,653 (7,185,882) 72,165,651 (7,185,882)

Interest paid (9,064,432) (13,487,237) (9,064,432) (13,487,237)

Business profit tax paid (812,845) - (812,845) -

Net cash generated from/(used in) operating activities 62,288,376 (20,673,119) 62,288,374 (20,673,119)

Cash flows from investing activities

Purchase of property, plant and equipment 6 (17,041,536) (27,839,000) (17,041,536) (27,839,000)

Purchase of intangible assets 7 (2,750) (55,898) (2,750) (55,898)

Expenditure on capital work-in-progress 8 (1,134,678) (3,847,567) (1,134,678) (3,847,567)

Proceeds from sale of property, plant and equipment 25 1,323,996 1,055,432 1,323,996 1,055,432

Net cash used in investing activities (16,854,968) (30,687,033) (16,854,968) (30,687,033)

Cash flows from financing activities

Proceeds from borrowings - 44,401,533 - 44,401,533

Interest received 81,653 5,992,813 81,653 5,992,813

Repayments of borrowings (54,505,873) (58,067,774) (54,505,872) (58,067,774)

Dividends paid to Company's shareholders (296,492) (845,934) (296,492) (845,934)

Net cash used in financing activities (54,720,712) (8,519,362) (54,720,711) (8,519,362)

Net decrease in cash, cash equivalents and bank overdraft (9,287,304) (59,879,514) (9,287,305) (59,879,514)

Cash, cash equivalents and bank overdrafts at beginning of the year 14 (5,012,908) 54,866,606 (5,518,498) 54,361,016

Cash, cash equivalents and bank overdrafts at end of the year 14 (14,300,212) (5,012,908) (14,805,802) (5,518,498)





NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL INFORMATION

These consolidated financial statements relate to the operations of

Maldives Transport and Contracting Company Plc ('the Company')

and its subsidiary and associate (together 'the Group'). It is a public

limited liability company incorporated in the Republic of Maldives

under the Act 4/81 on 18 December 1980. The Company was re-

registered with the Ministry of Trade and Industries on 12 February

1990. The principal activities undertaken by the Company include

trading, contracting, marine transportation, renting of buildings,

construction equipment and machinery, and auctioning. The

address of its registered office is MTCC Tower, Boduthakurufaanu

Magu, Male' 20057, Republic of Maldives.

The Company's shares are listed on the Maldives stock

exchange.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of

this financial statements are set out below. These policies have

been consistently applied over the years, unless otherwise

stated.

2.1 BASIS OF PREPARATION

The financial statements of Maldives Transport and Contracting

Company Plc have been prepared in accordance with International

Financial Reporting Standards (IFRS) and IFRIC interpretations.

The consolidated financial statements have been prepared under

the historical cost convention.

2.2 NEW ACCOUNTING STANDARDS ISSUED BUT NOT EFFECTIVE AS AT THE BALANCE SHEET DATE

(A) NEW AND AMENDED STANDARD ADOPTED BY THE

COMPANY

There are no IFRSs or IFRIC interpretations that are effective for

the first time for the financial year beginning on or after 1 January

2012 that would be expected to have a material impact on the

Company. The new standard and amendment effective for the first

time for period on or after 1 January 2012 is IAS 12 (Amendment),

Income Taxes.

(B) NEW STANDARDS AND INTERPRETATIONS NOT YET

ADOPTED

A number of new standards and amendments to standards and

interpretations are effective for annual periods beginning after 1

July 2012, and have not been applied in preparing these financial

statements. A summary of new accounting standards are set out

below:

- IAS 1 (Amendment), Presentation of Financial

Statements

(effective from 1 July 2012)

- IAS 19 (Amendment), Employee Benefits

(effective from 1 January 2013)

- IAS 32 (Amendment), Financial Instruments: Presentation


- IFRS 7 (Amendment), Financial Instruments: Disclosures


- IFRS 9, Financial Instruments


- IFRS 10, Consolidated Financial Statements


- IFRS 11, Joint Arrangements


- IFRS 12, Disclosure of Interests in Other Entities


- IFRS 13, Fair Value Measurement


2.3 CONSOLIDATION

(A) SUBSIDIARIES

Subsidiaries are all entities (including special purpose entities)

over which the Group has the power to govern the financial

and operating policies generally accompanying a shareholding

of more than one half of the voting rights. The existence and

effect of potential voting rights that are currently exercisable or

convertible are considered when assessing whether the Group

controls another entity. Subsidiaries are fully consolidated from

the date on which control is transferred to the Group. They are

de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on

transactions between group companies are eliminated. Unrealised

losses are also eliminated but considered an impairment indicator

of the asset transferred. Accounting policies of subsidiaries have

been changed where necessary to ensure consistency with the

policies adopted by the Group.

(B) TRANSACTIONS AND NON-CONTROLLING INTERESTS

Non-controlling interest is that portion of the profit or loss and net

asset of a subsidiary attributable to equity interests that are not

owned, directly or indirectly through subsidiaries, by the parent.

The Group applies a policy of treating transactions with non-

controlling interests as transactions with parties external to the

Group. Disposals of non-controlling interests result in gains and

losses for the Group that are recorded in the income statement.

Purchases from non-controlling interests result in goodwill,

being the difference between any consideration paid and the

relevant share acquired of the carrying value of net assets of the

subsidiary.


(C) ASSOCIATES

Associates are all entities over which the Group has significant

influence but not control, generally accompanying a shareholding

of between 20% and 50% of the voting rights. Investments in

associates are accounted for by the equity method of accounting

and are initially recognised at cost.

The Group’s share of its associates’ post-acquisition profits or

losses is recognised in the income statement, and its share of

post-acquisition movements in reserves is recognised in reserves.

The cumulative post-acquisition movements are adjusted against

the carrying amount of the investment. When the Group’s share

of losses in an associate equals or exceeds its interest in the

associate, including any other unsecured receivables, the Group

does not recognise further losses, unless it has incurred obligations

or made payments on behalf of the associate.

Unrealised gains on transactions between the Group and its

associates are eliminated to the extent of the Group’s interest

in the associates. Unrealised losses are also eliminated unless

the transaction provides evidence of an impairment of the asset

transferred. Associates’ accounting policies have been changed

where necessary to ensure consistency with the policies adopted

by the Group.

2.4 SEGMENT REPORTING

A business segment is a group of assets and operations engaged

in providing products or services that are different from those of

other business segments. A geographical segment is engaged

in providing products or services within a particular economic

environment that are subject to risks and returns that are different

from those of segments operating in other economic environments.

2.5 FOREIGN CURRENCY TRANSLATION

(A) FUNCTIONAL AND PRESENTATION CURRENCY

Items included in the financial statements of the Company are

measured using the currency of the primary economic environment

in which the entity operates ("the functional currency"). The

financial statements are presented in Maldivian Rufiyaa, which is

the Company's functional and presentation currency.

(B) TRANSACTIONS AND BALANCES

Foreign currency transactions are translated into the functional

currency using the exchange rates prevailing at the dates of the

transactions. Foreign exchange gains and losses resulting from

the settlement of such transactions and from the translation

at year-end exchange rates of monetary assets and liabilities

denominated in foreign currencies are recognised in the income

statement.

2.6 PROPERTY, PLANT AND EQUIPMENT

All property, plant and equipment, which are initially recorded at

historical cost, is stated at cost less depreciation. Cost includes

the transfer value of the assets, or their purchase cost, or the

cost of construction, together with any incidental expenses of

acquisition.

Subsequent costs are included in the asset's carrying amount or

recognised as a separate asset, as appropriate, only when it is

probable that future economic benefits associated with the item

will flow to the Group and the cost of the item can be measured

reliably. All other repairs and maintenance costs are charged to

the income statement during the financial period in which they are

incurred.

Depreciation is calculated using the straight-line method to

allocate their cost or revalued amounts to their residual values

over their estimated useful lives, commencing from the date in

which the assets were purchased up to the date of disposal, as

follows:

Buildings (other than MTCC tower) 10 Years

MTCC tower 25 Years

Plant and Machinery 5 Years

Motor vehicles other than dredging vehicles 5 Years

Dredging vehicles 5 Years

Excavators 5-7 Years

Dump trucks 3 Years

Wheel loader 3 Years

Crane 3 Years

Furniture and fittings 6.67 Years

Office equipment 5 Years

Vessels 10 Years

Tug 10 Years

Tools 3 Years

Sundry assets 5 Years

When values of acquisitions are less than MVR 5,000 those assets

are depreciated fully in the year of acquisition irrespective of their

useful lifetime.

The assets' residual values and useful lives are reviewed, and

adjusted if appropriate, at each balance sheet date.

Buildings constructed on leasehold land and improvements made to

leasehold premises are amortised over the unexpired period of the

lease.

An asset's carrying amount is written down immediately to its

recoverable amount if the asset's carrying amount is greater than

its estimated recoverable amount.

Gains and losses on disposals are determined by comparing

proceeds with carrying amount. These are included in the income

statement.

2.7 INTANGIBLE ASSETS

Computer software development costs recognised as assets are

amortised using the straight-line method over their estimated

useful lives (not exceeding five years). The carrying amount of each

intangible asset is reviewed annually and adjusted for permanent

impairment where it is considered necessary.

2.8 IMPAIRMENT OF NON-FINANCIAL ASSETS Assets that have an indefinite useful life are not subject to amortisation

and are tested annually for impairment. Assets that are subject

to amortisation are reviewed for impairment whenever events or

changes in circumstances indicate that the carrying amount may not

be recoverable. An impairment loss is recognised for the amount by

which the asset's carrying amount exceeds its recoverable amount.


The recoverable amount is the higher of an asset's fair value less

costs to sell and value in use. For the purposes of assessing

impairment, assets are grouped at the lowest levels for which

there are separately identifiable cash flows (cash-generating

units). Non-financial assets that suffered an impairment are

reviewed for possible reversal of the impairment at each reporting

date.

2.9 NON-CURRENT ASSETS HELD FOR SALE Non-current assets are classified as assets held for sale when

their carrying amount is to be recovered principally through a sale

transaction and a sale is considered highly probable. They are

stated at the lower of carrying amount and fair value less costs

to sell.

2.10 FINANCIAL ASSETS

The Company classifies its financial assets in the following

categories. The classification depends on the purpose of which

the financial assets were acquired. The management determines

the classification of its financial assets at initial recognition and

re-evaluates this designation at every reporting date.

(A) LOANS AND RECEIVABLES

Loans and receivables are non-derivative financial assets with

fixed or determinable payments that are not quoted in an active

market. They are included in current assets, except for maturities

greater than 12 months after the balance sheet date. These are

classified as non-current assets. Loans and receivables are

classified as "trade and other receivables" in the statement of

financial position.

The Company assesses at each balance sheet date whether there

is objective evidence that a financial asset is impaired.

(B) AVAILABLE-FOR-SALE FINANCIAL ASSETS

Available-for-sale financial assets are non-derivatives that are

either designated in this category or not classified in any other

categories. They are included in non-current assets, unless

management intend to dispose of the investment within 12 months

of the balance sheet date.

When securities classified as available-for-sale are sold or

impaired, the accumulated fair value adjustments recognised in

equity are included in the income statement as 'gains and losses

from investment securities'. Dividends on available-for-sale equity

instruments are recognised in the income statements, when the

Company's right to receive payments is established.

The fair values of quoted investments are based on current bid

prices. If the market for the financial asset is not active (and for

unlisted securities), the Company establishes fair value by using

valuation techniques. These include the use of recent arm's length

transactions, reference to other instruments that are substantially

the same, discounted cash flow analysis and option pricing

models, making maximum use of market inputs and relying as little

as possible on entity-specific inputs. Wherever these techniques

cannot give reliable fair price, the price of unlisted securities is

established at cost.

The Company assesses at each balance sheet date whether

there is objective evidence that a financial asset or a group of

financial assets is impaired. In the case of equity securities

classified as available-for-sale, a significant or prolonged decline

in the fair value of the security below its cost is considered an

indicator that the securities are impaired. If any such evidence

exists for available-for-sale financial assets, the cumulative loss

– measured as the difference between the acquisition cost and

the current fair value, less any impairment loss on that financial

asset previously recognised in profit or loss – is removed from

equity and recognised in the income statement. Impairment losses

recognised in the income statement on equity instruments are not

reversed through the income statement.

2.11 INVENTORIES

Inventories are stated at the lower of cost and net realisable value.

Cost is determined using the first-in, first-out (FIFO) method and

includes import duty, insurance, freight, port charges and bank

charges. The cost does not include borrowing cost. Net realisable

value is the estimated selling price in the ordinary course of

business less applicable variable selling expenses.

2.12 CONSTRUCTION CONTRACTS

A construction contract is defined by IAS 11, ‘Construction

contracts’, as a contract specifically negotiated for the construction

of an asset.

When the outcome of a construction contract can be estimated

reliably and it is probable that the contract will be profitable,

contract revenue is recognised over the period of the contract

by reference to the stage of completion. Contract costs are

recognised as expenses by reference to the stage of completion

of the contract activity at the end of the reporting period. When

it is probable that total contract costs will exceed total contract

revenue, the expected loss is recognised as an expense

immediately.

When the outcome of a construction contract cannot be estimated

reliably, contract revenue is recognised only to the extent of

contract costs incurred that are likely to be recoverable.

Variations in contract work, claims and incentive payments are

included in contract revenue to the extent that may have been

agreed with the customer and are capable of being reliably

measured.

The Group uses the ‘percentage-of-completion method’ to

determine the appropriate amount to recognise in a given

period. The stage of completion is measured by reference to the

contract costs incurred up to the end of the reporting period as

a percentage of total estimated costs for each contract. Costs

incurred in the year in connection with future activity on a contract

are excluded from contract costs in determining the stage of

completion.

On the balance sheet, the Company reports the net contract

position for each contract as either an asset or a liability. A contract

represents an asset where costs incurred plus recognised profits

(less recognised losses) exceed progress billings; a contract

represents a liability where the opposite is the case.

In determining cost incurred up to year end, any costs relating to

future activity on a contract are excluded and shown as contract


work in progress. The aggregate of the cost incurred and the

profit/loss recognised on each contract is compared against

the progress billings up to the year end. Where the sum of the

costs incurred and recognised profit or loss exceeds the progress

billings, the balance is shown under receivables and prepayments

as due from customers on contracts.

2.13 TRADE RECEIVABLES

Trade receivables are recognised initially at fair value and

subsequently measured at amortised cost using the effective

interest method, less provision for impairment. A provision for

impairment of trade receivables is established when there is

objective evidence that the Company will not be able to collect

all amounts due according to the original terms of receivables.

The amount of the provision is the difference between the asset's

carrying amount and the present value of estimated future cash

flows, discounted at the effective interest rate. The amount of the

provision is recognised in the income statement within 'selling and

marketing costs'.

2.14 CASH AND CASH EQUIVALENTS Cash and cash equivalents include cash in hand, deposits held

at call with banks, other short-term highly liquid investments with

original maturities of three months or less, and bank overdrafts.

Bank overdrafts are shown within borrowings in current liabilities

on the balance sheet.

2.15 EMPLOYEE BENEFITS Company is liable to enroll the employees in the Retirement

Pension Scheme with effect from 1 May 2011 based on the

Regulation on Maldives Retirement Pension Scheme published by

Government of Maldives and shall make contributions at a rate

of 7% from the employee's pensionable wages on behalf of the

employees of age between 16 and 65 years to the pension office.

Company contribution to retirement pension scheme is at the rate

of 7% on pensionable wages. Obligations for contributions to

retirement pension scheme is recognized as an employee benefit

expense in the income statement.

2.16 SHARE CAPITAL Ordinary shares are classified as equity.

2.17 BORROWINGS

Borrowings are recognised initially at fair value, net of transaction

costs incurred. Borrowings are subsequently stated at amortised

cost; any difference between the proceeds (net of transaction

costs) and the redemption value is recognised in the income

statement over the period of the borrowings using the effective

interest method.

Borrowings are classified as current liabilities unless the Company

has an unconditional right to defer settlement of the liability for at

least 12 months after the balance sheet date.

2.18 PROVISIONS

Provisions are recognised when: the Company has a present legal

or constructive obligation as a result of past events; it is more

likely than not that an outflow of resources will be required to

settle the obligation; and the amount has been reliably estimated.

Provisions are not recognised for future operating losses.

Where there are a number of similar obligations, the likelihood

that an outflow will be required in settlement is determined by

considering the class of obligations as a whole. A provision is

recognised even if the likelihood of an outflow with respect to

any one item included in the same class of obligations may be

small.

Provisions are measured at the present value of the expenditures

expected to be required to settle the obligation using a rate that

reflects current market assessments of the time value of money

and the risks specific to the obligations.

2.19 CURRENT AND DEFERRED BUSINESS PROFIT TAX

The tax expenses for the period comprises current and deferred

business profit tax. Tax is recognised in the income statement,

except to the extent that it relates to items recognised directly in

equity.

The current business profit tax charge is calculated on the basis

of the tax laws enacted or substantively enacted at the balance

sheet date. Management periodically evaluates positions taken

in tax computation with respect to situations in which applicable

tax regulation is subject to interpretation. It establishes provisions

where appropriate on the basis of amounts expected to be paid

to the tax authorities.

The provisions for business profit tax is based on the elements of

income and expenditure as reported in the Financial Statements

and computed in accordance with the provisions of the Business

Profit Tax Act.

The company is liable to business profit tax at rate of 15%, if the

taxable profit of the year exceeds MVR 500,000, with effect from 18

July 2011.

Deferred business profit tax is recognised, using the liability

method, on temporary differences arising between the tax bases

of assets and liabilities and their carrying amounts in the financial

statements. However deferred business profit tax is not accounted

for if it arises from initial recognition of an asset or liability in a

transaction other than a business combination that at the time

of the transaction affects neither accounting nor taxable profit or

loss. Deferred business profit tax is determined using tax rates

that have been enacted or substantially enacted by the balance

sheet date and are expected to apply when the related deferred

business profit tax asset is realised or the deferred business profit

tax liability is settled.

Deferred business profit tax assets are recognised only to the

extent that it is probable that future taxable profit will be available

against which the temporary difference can be utilised.

However during the current year, a deferred tax asset amounting

MVR 28,009,927 arose due to the difference between tax base of

fixed assets and the carrying amounts in the financial statements,


which was not recognised as asset and also was not adjusted

against current tax liability. The Board of Directors of the Company

are of the opinion that the Company has made contionus losses

in last 3 years and adequate amount of future taxable profit may

not be available against which the temporary difference can be

utilised.

Deferred business profit tax assets and liabilities are offset when

there is a legally enforceable right to offset current tax assets

against current tax liabilities and when the deferred business profit

taxes assets and liabilities relate to business profit taxes levied by

the same taxation authority on either the same taxable entity or

different taxable entities where there is an intention to settle the

balances on a net basis.

2.20 REVENUE RECOGNITION

Revenue comprises the fair value of the sale of goods and services,

net of discounts. Revenue is recognised as follows:

(A) SALES OF GOODS - RETAIL

Sales of goods are recognised when the Company has delivered

products to the customer; the customer has accepted the

products; and collectability of the related receivables is reasonably

assured.

(B) SALES OF SERVICES

Sales of services are recognised in the accounting period in

which the services are rendered, by reference to completion of the

specific transaction, assessed on the basis of the actual service

provided as a proportion of the total services to be provided.

(C) INTEREST INCOME

Interest income is recognised on a time-proportion basis using the

effective interest method.

(D) DIVIDEND INCOME

Dividend income is recognised when the right to receive payment

is established.

(E) RENTAL INCOME

Rental income is recognised on an accrual basis in accordance

with the substance of the relevant agreement.

2.21 LEASES

(A) THE COMPANY IS THE LESSEE

Leases where the lessor retains substantially all the risks and

rewards of ownership are classified as operating leases. Payments

made under operating leases (net of any incentives received from

the lessor) are charged to the income statement on a straight-line

basis over the period of the lease.

(B) THE COMPANY IS THE LESSOR

Assets leased to third parties under operating leases are included

in property, plant and equipment in the balance sheet. They are

depreciated over their expected useful lives on a basis consistent

with similar owned property, plant and equipment. Rental income

(net of any incentives given to lessees) is recognised on a straight-

line basis over the lease term.

2.22 DIVIDEND DISTRIBUTION Dividend distribution to the Company's shareholders is recognised

as a liability in the Company's financial statements in the period in

which the dividends are approved by the Company's shareholders.

3 FINANCIAL RISK MANAGEMENT

3.1 FINANCIAL RISK FACTORS The Company's activities expose it to a variety of financial risks:

market risk (including foreign exchange risk), credit risk and

liquidity risk. The Company's overall risk management programme

focuses on the unpredictability of financial markets and seeks to

minimise potential adverse effects on the Company's financial

performance.

Risk management is carried out by the Board of Directors on

specific areas, such as foreign exchange risk, credit risk and the

liquidity risk.

(A) MARKET RISK

(I) FOREIGN EXCHANGE RISK

The Company operates internationally and is exposed to foreign

exchange risk arising from various currency exposures. Foreign

exchange risk arises from future commercial transactions,

recognised assets and liabilities.

(I I) PRICE RISK

The Company is exposed to equity securities price risk because of

the investment held by the Company and classified on the balance

sheet as available-for-sale.

(B) CREDIT RISK


The Company has no significant concentrations of credit risk. It

has policies in place to ensure that sales of goods and services

are made to customers with an appropriate credit history.

(C) INTEREST RATE RISK

The Company's exposure to interest rate risk relates to its bank

and other borrowings which are on fixed and floating rate terms,

and this risk is reviewed on an on going basis. At the balance

sheet the Company did not have in place any instruments to

hedge its exposure to interest rate risk.

(D) LIQUIDITY RISK

Prudent liquidity risk management implies maintaining sufficient

cash and marketable securities, the availability of funding through

an adequate amount of committed credit facilities and the ability to

close out market positions. The Company did not have committed

credit facilities at the end of the year.

3.2 CAPITAL RISK MANAGEMENT

The Company's objectives when managing capital are to

safeguard the Company's ability to continue as a going concern

in order to provide returns for shareholders and benefits for other

stakeholders and to maintain an optimal capital structure to

reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company

may adjust the amount of dividends payable to shareholders,

issue new shares or sell assets to reduce debt.

The Company monitors capital on the basis of the gearing ratio.

This ratio is calculated as net debt divided by total capital. Net

debt is calculated as total borrowings excluding trade and other

payables, as shown in the balance sheet less cash and cash

equivalents. Total capital is calculated as equity, as shown in the

balance sheet, plus net debt.

The gearing ratios as at 31 December 2012 and 2011 were as

follows:

The decrease in gearing ratio as at 31 December 2012 compared

with 31 December 2011, is primarily due to decrease in bank

borrowings and increase in total equity due to the net fair value

gain on available-for-sale financial assets and the profit earned

during the year.

3.3 FAIR VALUE ESTIMATION

The nominal value less impairment provision of trade receivables

and payables are assumed to approximate their fair values. The

fair value of financial liabilities for disclosure purposes is estimated

by discounting the future contractual cash flows at the current

market interest rate that is available to the Company for similar

financial instruments.

4 COMPARATIVES

Where necessary, comparative figures have been adjusted

to conform with changes in presentation in the current

period.

GROUP COMPANY

2012 2011 2012 2011

Total borrowings (Note 16) 122,597,006 176,474,519 122,597,006 176,474,519

Less: Cash and cash equivalents (Note 14) (33,528,118) (76,039,943) (33,022,528) (75,534,353)

Net debt 89,068,888 100,434,576 89,574,478 100,940,166

Total equity 254,508,109 224,582,907 262,526,699 232,579,064

Total capital 343,576,998 325,017,483 352,101,177 333,519,230

Gearing ratio 26% 31% 25% 30%




The segment results of the Group for the year ended 31 December 2012 are as follows:

Trading Contracting

Transport - Greater Male'

Region

Transport - North Central

Province Other Unallocated Total

Revenue 131,065,598 347,091,179 72,946,404 5,525,305 22,522,730 53,390 579,204,606

Operating profit/ (loss) 29,278,139 61,426,054 (15,711,367) (15,540,882) (6,977,801) (15,683,860) 36,790,283

Finance income / (costs) (Note 22) - (1,795,768) 14,526 - - (8,490,691) (10,271,933)

Profit / (loss) before tax 29,278,139 59,630,286 (15,696,841) (15,540,882) (6,977,801) (24,174,551) 26,518,351

Business profit tax (2,508,741)

Profit after tax 24,009,610

The segment results of the Group for the year ended 31 December 2012 are as follows:

Revenue 144,803,656 223,700,130 74,707,981 5,111,756 56,692,777 60,000 505,076,299

Operating profit / (loss) 31,135,889 42,960,399 (12,334,279) (13,880,357) (10,257,151) (18,911,741) 18,712,760

Finance income / (costs) (Note 22) 7,533 (3,111,482) (78,688) - - (21,187,905) (24,370,542)

Share of loss from associate (Note 10) - - - - - (2,521,727) (2,521,727)

Profit / (loss) before tax 31,143,422 39,848,917 (12,412,967) (13,880,357) (10,257,151) (42,621,373) (8,179,509)

Business profit tax (136,584)

Loss after tax (8,316,093)

Other segment items included in the Group income statement are as follows:

Year ended 31 December 2012

Depreciation (Note 6) 491,399 26,022,928 7,542,371 - 13,129,585 1,027,866 48,214,149

Amortisation (Note 7) 6,401 1,985 - - - 510,417 518,803


Depreciation (Note 6) 744,204 24,692,349 8,897,262 - 14,189,405 1,653,525 50,176,745

Amortisation (Note 7) 9,560 2,964 - - - 762,270 774,794

The segment assets and liabilities of the Group at 31 December 2012 and capital expenditure for the year then ended are as follows:

Assets 62,596,584 359,151,476 22,829,437 - 91,639,181 97,345,769 633,562,447

Liabilities 10,539,929 146,753,537 41,397 - - 221,719,475 379,054,338

Capital expenditure (Note 6 and 7) - 46,706,258 1,514,256 - 2,219,235 1,592,094 52,031,843

The segment assets and liabilities of the Group at 31 December 2011 and capital expenditure for the year then ended are as follows:

Assets 48,770,205 363,212,299 28,726,437 - 115,796,635 118,373,823 674,879,399

Liabilities 11,771,271 255,407,741 41,397 - 285,339 182,790,744 450,296,492

Capital expenditure (Note 6 and 7) 2,406,593 20,155,278 5,494,513 - 3,599,407 86,673 31,742,464

5 SEGMENT INFORMATION - GROUP

At 31 December 2012, the Group is organised into four main business segments.

(1) Trading :

Trading in engines, generators, spare parts, lubricants, paint and industrial gas.

(2) Contracting:

Construction of harbour development projects, dredging projects, land reclamation projects, shore protection projects, sheet piling

projects and civil construction projects.

(3) Transport:

Ferry service in Greater Male' Region and North Central Province.

(4) Other:

Rental of machinery, equipments, vehicles, real estate, auctions of various products, repair and maintenance services, anchoring and

docking services, logistic and cargo transport services, and ship agent.




6 PROPERTY, PLANT AND EQUIPMENT - GROUP

Land BuildingsPlant &

Machinery Motor Vehicles

Furniture & Office /

Communication Equipment Vessels

Sundry Assets Total

At 31 December 2010

Cost 7,370,831 113,649,389 359,410,422 12,003,910 29,612,766 110,895,903 20,282,150 653,225,371

Accumulated depreciation - (56,231,041) (287,245,572) (11,038,486) (25,166,954) (54,234,640) (17,617,791) (451,534,484)

Net book amount 7,370,831 57,418,348 72,164,850 965,424 4,445,812 56,661,263 2,664,359 201,690,887


Opening net book amount 7,370,831 57,418,348 72,164,850 965,424 4,445,812 56,661,263 2,664,359 201,690,887

Additions - - 10,732,552 1,500,000 1,109,838 12,345,926 2,150,684 27,839,000

Transferred from capital work in progress (Note 8) - 2,039,690 1,948,147 - - 525,615 4,513,452

Disposals - Cost - - (649,235) (6,944,720) (518,175) (1,724,008) (300) (9,836,438)

Disposals - Accumulated depreciation 649,235 6,944,720 465,694 1,596,707 300 9,656,656

Depreciation charge (Note 20) - (6,450,910) (29,215,448) (680,142) (1,954,977) (10,034,862) (1,840,406) (50,176,745)

Closing net book amount 7,370,831 53,007,128 55,630,101 1,785,282 3,548,192 59,370,641 2,974,637 183,686,812

At 31 December 2011

Cost 7,370,831 115,689,079 371,441,886 6,559,190 30,204,429 122,043,436 22,432,534 675,741,385


Net book amount 7,370,831 53,007,128 55,630,101 1,785,282 3,548,192 59,370,641 2,974,637 183,686,812


Opening net book amount 7,370,831 53,007,128 55,630,101 1,785,282 3,548,192 59,370,641 2,974,637 183,686,812

Additions - - 48,153,570 95,000 1,099,767 557,726 988,351 50,894,415

Transferred from capital work in progress (Note 8) - - - - 1,904,239 193,168 - 2,097,407

Disposals - Cost - - (14,339,753) - (785,589) - (159,849) (15,285,191)

Disposals - Accumulated depreciation - - 13,754,090 - 785,589 - 150,266 14,689,945



At 31 December 2012

Cost 7,370,831 115,689,079 405,255,703 6,654,190 32,422,846 122,794,330 23,261,036 713,448,016


Net book amount 7,370,831 46,460,933 76,668,414 1,250,089 4,867,807 48,774,269 2,476,896 187,869,238




6 PROPERTY, PLANT AND EQUIPMENT - COMPANY

Land BuildingsPlant &

Machinery Motor Vehicles

Furniture & Office /

Communication Equipment Vessels

Sundry Assets Total

At 31 December 2010

Cost 7,370,831 113,649,389 359,410,422 12,003,910 29,612,766 110,895,903 20,282,150 653,225,371


Net book amount 7,370,831 57,418,348 72,164,850 965,424 4,445,812 56,661,263 2,664,359 201,690,887


Opening net book amount 7,370,831 57,418,348 72,164,850 965,424 4,445,812 56,661,263 2,664,359 201,690,887

Additions - - 10,732,552 1,500,000 1,109,838 12,345,926 2,150,684 27,839,000

Transferred from capital work in progress (Note 8) - 2,039,690 1,948,147 - - 525,615 - 4,513,452

Disposals - Cost - - (649,235) (6,944,720) (518,175) (1,724,008) (300) (9,836,438)

Disposals - Accumulated depreciation - - 649,235 6,944,720 465,694 1,596,707 300 9,656,656



At 31 December 2011

Cost 7,370,831 115,689,079 371,441,886 6,559,190 30,204,429 122,043,436 22,432,534 675,741,385


Net book amount 7,370,831 53,007,128 55,630,101 1,785,282 3,548,192 59,370,641 2,974,637 183,686,812


Opening net book amount 7,370,831 53,007,128 55,630,101 1,785,282 3,548,192 59,370,641 2,974,637 183,686,812

Additions - - 48,153,570 95,000 1,099,767 557,726 988,351 50,894,415

Transferred from capital work in progress (Note 8) - - - - 1,904,239 193,168 - 2,097,407

Disposals - Cost - - (14,339,753) - (785,589) - (159,849) (15,285,191)

Disposals - Accumulated depreciation - - 13,754,090 - 785,589 - 150,266 14,689,945



At 31 December 2012

Cost 7,370,831 115,689,079 405,255,703 6,654,190 32,422,846 122,794,330 23,261,036 713,448,016


Net book amount 7,370,831 46,460,933 76,668,414 1,250,089 4,867,807 48,774,269 2,476,896 187,869,238




(a) The buildings have been constructed on land belonging to the Government of Maldives, for which a rental of MVR 6,710,547

(2011: MVR 6,245,369) is paid per annum.

(b) The value of the fully depreciated property, plant and equipment at the balance sheet date amounted to MVR 329,130,097

(2011: MVR 288,684,607).

(c) Demand loans, bank overdraft, LC facility and bank guarantee from Bank of Maldives Plc are secured over MTCC building, MTCC

Tower, barges (kurimagu 10 & 11), tug boats (Tango 6 & 575), steel landing craft (Leema 1) and a dredger (Jarrafa 3) (Note 16).

(d) The borrowing from Caterpillar Financial Services Asia Pte Ltd is secured on tractors, excavators and wheel loaders (Note 16).

(e) The borrowing from Habib Bank is secured on 3 speed boats (Note 16).

7. INTANGIBLE ASSETS

GROUP COMPANY

2012 2011 2012 2011

At 1st January

Opening net book amount 735,614 1,454,510 735,614 1,454,510

Additions 2,750 55,898 2,750 55,898

Amortisation charge (Note 20) (518,803) (774,794) (518,803) (774,794)

Closing net book amount 219,561 735,614 219,561 735,614

At 31 December

Cost 5,019,818 5,017,068 5,019,818 5,017,068

Amortisation charge (4,800,257) (4,281,454) (4,800,257) (4,281,454)

Net book amount 219,561 735,614 219,561 735,614

8. CAPITAL WORK-IN-PROGRESS (CWIP)

GROUP COMPANY

2012 2011 2012 2011

Opening net book amount 1,233,204 1,899,089 1,233,204 1,899,089

Expenditure incurred during the year 1,134,678 3,847,567 1,134,678 3,847,567

Transferred to property, plant and equipment (Note 6) (2,097,407) (4,513,452) (2,097,407) (4,513,452)

Closing net book amount 270,476 1,233,204 270,476 1,233,204




9. ASSETS HELD FOR SALE

GROUP COMPANY

2012 2011 2012 2011

Cost:

Opening balance 8,117,396 9,376,330 8,117,396 9,376,330

Less: Disposals (7,460,012) (1,258,934) (7,460,012) (1,258,934)

Closing balance 657,384 8,117,396 657,384 8,117,396

Provisions for impairment:

Opening balance 6,281,387 - 6,281,387 -

Provision for impairment - 6,281,387 - 6,281,387

Impairment loss on disposed assets (5,788,349) - (5,788,349) -

Closing balance 493,038 6,281,387 493,038 6,281,387

Net value 164,346 1,836,009 164,346 1,836,009

The assets held for sales are in the nature of speed launch and engines

10. INVESTMENT IN ASSOCIATE/SUBSIDIARY

A) ASSOCIATE: GROUP COMPANY

2012 2011 2012 2011

At 1 January - 2,521,727 - 2,521,727

Share of loss / impairment of investment - (2,521,727) - (2,521,727)

At 31 December - - - -

The Group’s share of the results of its associate, which is unlisted, and its aggregated assets and liabilities, are as follows:

Assets Liabilities Revenues Loss Percentage of

interest held


Airport Investments Maldives Private Limited 274,766,289 276,201,492 - - 33 1/3%


Airport Investments Maldives Private Limited 275,585,463 276,273,685 - (2,521,727) 33 1/3%

The Group has not recognised accumulated losses amounting to MVR 248,994 (2011: MVR 229,407 ). The accumulated losses not

recognised were MVR 478,401 ( 2011: MVR 229,407).

The audit reports of the associate Company have been disclaimed in past. Therefore the amounts of assets, liabilities and loss shown

above will get affected, if the adjustments are carried out to the financial statements of the associate Company.




Opening balance 01.01.2012

Increase/(decrease) in value

of Investment Closing balance

31.12.2012

Shares in Bank of Maldives Plc 15,994,007 5,915,593 21,909,600

Shares in Maldives Finance and Leasing Company 1 - 1

15,994,008 5,915,593 21,909,601

11. AVAILABLE-FOR-SALE FINANCIAL ASSETS

GROUP COMPANY

2012 2011 2012 2011

Shares in Bank of Maldives Plc 21,909,600 15,994,007 21,909,600 15,994,007

Shares in Maldives Finance and Leasing Company 1 1 1 1

At the end of the year 21,909,601 15,994,008 21,909,601 15,994,008

B) SUBSIDIARY:

GROUP COMPANY

2012 2011 2012 2011

Investment in Maldives Real Estate Investment Corporation Private Limited

- - 7,102,500 7,102,500

Available-for-sale investments, comprising principally marketable equity securities, are measured at fair value annually at the close of business on 31 December. For investments traded in active markets, fair value is determined by reference to Stock Exchange quoted bid prices. There were no disposal on available-for-sale investments in 2012 and 2011. Other investments (unlisted securities) are stated at cost since the fair value of those shares cannot be measured reliably.

Available-for-sale investments are classified as non-current assets, unless they are expected to be realised within twelve months of the balance sheet date or unless they need to be sold to raise operating capital.

Available-for-sale financial assets, consist of marketable securities of Bank of Maldives plc, having a market value of MVR 21,909,600 (2011: MVR 15,994,007) and, investment in equity shares of MFLC are stated at cost less impairment since the fair value of these unlisted shares cannot be measured reliably.

12. TRADE AND OTHER RECEIVABLES

GROUP COMPANY

2012 2011 2012 2011

Trade receivables 112,186,445 146,117,034 112,186,445 146,117,034

Less: provision for impairment of receivables (34,727,117) (41,279,502) (34,727,117) (41,279,502)

Trade receivables (net) 77,459,327 104,837,532 77,459,327 104,837,532

Prepayments 44,666,939 29,697,639 44,666,939 29,697,639

Receivables from related parties (Note 29) 150,628,525 150,402,411 153,283,596 153,035,976

Other receivables 9,406,353 6,225,878 9,406,353 6,225,878

Less : Provision for impairment (15,583,064) (21,434,887) (15,583,064) (21,434,887)

266,578,080 269,728,573 269,233,151 272,362,138




The carrying amount of the trade and other receivables approximates its fair value.

Other receivables mainly consist of LC margin of MVR 5,661,329 (2011: MVR 3,546,459), advance for Project of MVR 1,185,536 (2011:

MVR 1,572,253), Input tax of MVR 1,365,370 (2011: MVR 319,434) and cash advance of MVR 147,480 (2011: MVR 172,160).

There is no concentration of credit risk with respect to trade receivables, as the Company has a large number of customers.

13. INVENTORIES

GROUP COMPANY

2012 2011 2012 2011

Materials - Contracting department 20,103,890 24,261,653 18,854,152 23,011,915

Lubricants, paints, construction materials etc 27,978,728 28,714,445 27,978,728 28,714,445

Yanmar engines, generators and spare parts 78,195,959 74,667,039 78,195,959 74,667,039

Consumables 6,651,340 5,884,545 6,651,340 5,884,545

Provision for slow moving items (9,906,890) (7,902,446) (9,906,890) (7,902,446)

123,023,027 125,625,236 121,773,289 124,375,498

14. CASH AND CASH EQUIVALENTS

GROUP COMPANY

2012 2011 2012 2011

Cash at bank and in hand 33,528,118 76,039,943 33,022,528 75,534,353

Cash, cash equivalents and bank overdrafts include the following for the purposes of cash flow statement:

GROUP COMPANY

2012 2011 2012 2011

Cash and cash equivalents 33,528,118 76,039,943 33,022,528 75,534,353

Bank overdrafts (Note 16) (47,828,330) (81,052,851) (47,828,330) (81,052,851)

(14,300,212) (5,012,908) (14,805,802) (5,518,498)

15. SHARE CAPITAL

Number of shares

AmountMVR

At 1 January 2011 250,000 12,500,000

At 31 December 2011 250,000 12,500,000

At 31 December 2012 250,000 12,500,000

The total authorised number of ordinary shares is 250,000 shares with a par value of MVR 50 per share (2011: MVR 50 per share).

All issued shares are fully paid.




16. BORROWINGS

GROUP COMPANY

2012 2011 2012 2011

Non-current

Bank & other borrowings 22,167,683 11,470,827 22,167,683 11,470,827

Current 47,828,330 81,052,851 47,828,330 81,052,851

Bank overdrafts (Note 14) 52,600,993 83,950,841 52,600,993 83,950,841

Bank & other borrowings 100,429,323 165,003,692 100,429,323 165,003,692

Total borrowings 122,597,006 176,474,519 122,597,006 176,474,519

Maturity of non-current borrowings:

GROUP COMPANY

2012 2011 2012 2011

Within one year 5,945,636 83,950,841 5,945,636 83,950,841

Between 1 to 5 years 10,511,023 11,470,827 10,511,023 11,470,827

16,456,659 95,421,668 16,456,659 95,421,668

The interest rate exposure of the borrowings of the Company was as follows :

GROUP COMPANY

2012 2011 2012 2011

- at fixed rates 122,597,006 176,474,519 122,597,006 176,474,519

17. LOAN FROM A SHAREHOLDER

GROUP COMPANY

2012 2011 2012 2011

Loan from a share holder 77,296,462 - 77,296,462 -

Non-current portion 69,244,747 - 69,244,747 -

Current portion 8,051,715 - 8,051,715 -

77,296,462 - 77,296,462 -

Advance received from Ministry of Finance & Treasury in 2011 has been converted as a long term loan after signing an agreement on 03

September 2012, which carries an interest rate of 7.5% per annum, unsecured and repayable within 96 monthly instalments with a grace

period of 6 months from 03 September 2012.

The borrowings from Caterpillar Financial Services Asia Pte Ltd finance are secured against tractors, excavators and wheel loaders. The

borrowing from Habib bank is secured against 3 speed boats. Term loans, bank overdraft, LC facility and bank guarantee from Bank

of Maldives Plc are secured by MTCC building, MTCC Tower, barges (kurimagu 10 & 11), tug boats (Tango 6 & 575), steel landing craft

(Leema 1) and a dredger (Jarrafa 3).




18. TRADE AND OTHER PAYABLES

GROUP COMPANY

2012 2011 2012 2011

Trade payables 41,969,736 43,228,686 41,969,736 43,228,686

Accrued expenses 7,354,872 5,267,085 7,338,528 5,251,665

Payables to related parties (Note 29) 24,033,681 26,045,408 24,033,681 26,045,408

Other payables 103,970,102 199,144,210 103,970,098 199,144,210

177,328,391 273,685,389 177,312,043 273,669,969

Other payables mainly consist of unpaid dividend amounting to MVR 17,768,726 (2011: MVR 18,165,218) and advance received from

customers amounting to MVR 69,578,731 (2011: MVR 168,331,976).

19. OTHER INCOME

GROUP COMPANY

2012 2011 2012 2011

Commission income and others 5,350,826 11,476,440 5,350,826 11,476,440

Service charge income 81,653 5,992,814 81,653 5,992,814

Reversal of provisions for impairment of receivables 12,401,872 - 12,401,872 -

Profit on sale of property, plant and equipment 319,167 396,433 319,167 396,433

18,153,518 17,865,687 18,153,518 17,865,687




20. EXPENSES BY NATURE

GROUP COMPANY

2012 2011 2012 2011

Depreciation (Note 6) 48,214,149 50,176,745 48,214,149 50,176,745

Amortisation (Note 7) 518,803 774,794 518,803 774,794

Employee benefit expense (Note 21) 101,960,144 89,034,817 101,960,144 89,034,817

Materials and consumables 265,420,834 230,979,857 265,420,834 230,979,857

Investment written-off - 9,637,499 - 9,637,499

Director fees 742,067 839,684 742,067 839,684

Lease rent, hiring and sub contract expenses 81,668,318 67,917,246 81,668,318 67,917,246

Repairs and maintenance 19,086,361 11,477,263 19,086,361 11,477,263

Transportation, travel and inspection 6,904,895 4,328,120 6,904,895 4,328,120

Electricity, water, insurance and communication 13,794,376 14,446,042 13,794,376 14,446,042

Accounting and professional charges 600,594 470,961 578,162 470,961

Consultation, legal fees and service charges 1,236,686 3,825,900 1,236,686 3,825,900

Bank charges 2,058,192 2,099,284 2,058,192 2,099,284

Zakath 588,510 590,599 588,510 590,599

Advertising, sales promotion and marketing 2,403,938 2,112,001 2,403,938 2,112,001

Training expenses 1,079,048 959,547 1,079,048 959,547

Security charges 1,302,591 712,609 1,302,591 712,609

Licence and registration fees 2,207,508 1,840,965 2,207,508 1,840,965

Printing and stationery 2,428,198 1,525,701 2,428,198 1,525,701

Loss on sale of assets 1,262,080 779,722 1,262,080 779,722

Provision for slow moving and non moving inventory 2,004,444 - 2,004,444 -

Impairment charge on asset held for sale - 6,281,387 - 6,281,387

Other expenses 5,086,105 3,418,482 5,086,105 3,398,562

Total 560,567,842 504,229,226 560,545,410 504,209,306

GROUP COMPANY

2012 2011 2012 2011

Classified as:

- cost of sales 489,271,004 427,460,932 489,271,004 427,460,932

- selling and marketing costs 2,403,938 2,112,001 2,403,938 2,112,001

- administrative expenses 54,319,320 52,146,913 54,296,888 52,126,993

- other operating expenses 14,573,579 22,509,380 14,573,579 22,509,380

560,567,842 504,229,226 560,229,226 504,209,306




21. EMPLOYEE BENEFIT EXPENSE

GROUP COMPANY

2012 2011 2012 2011

Wages, salaries and bonus 72,779,529 66,954,838 72,779,529 66,954,838

Other allowance 15,866,494 11,835,595 15,866,494 11,835,595

Pension contribution 2,422,212 1,712,799 2,422,212 1,712,799

Staff food allowance 9,077,267 7,136,792 9,077,267 7,136,792

Staff medical expenses 168,973 49,891 168,973 49,891

Foreign staff expenses 1,356,299 1,094,850 1,356,299 1,094,850

Staff welfare 289,370 250,052 289,370 250,052

101,960,144 89,034,817 101,960,144 89,034,817

22. FINANCE COSTS

GROUP COMPANY

2012 2011 2012 2011

Finance expense

- Interest expense on borrowings 6,097,900 7,469,320 6,097,900 7,469,320

- Interest expense on bank overdraft 7,261,164 6,017,917 7,261,164 6,017,917

- Net foreign exchange (gain)/loss (3,087,131) 10,883,305 (3,087,131) 10,883,305

10,271,933 24,370,542 10,271,933 24,370,542

23. BUSINESS PROFIT TAX

GROUP COMPANY

2012 2011 2012 2011

Current business profit tax 2,508,741 136,584 2,508,741 136,584

Reconciliations between business profit tax expenses and the accounting profit :

GROUP COMPANY

2012 2011 2012 2011

Profit/(loss) before tax 26,518,351 (8,179,509) 26,540,783 (8,159,589)

Add : Loss incurred on or before the commencement of the business profit tax Act - 4,426,298 - 4,426,298

Profit/(loss) earned after the commencement of the business profit tax Act 26,518,351 (3,753,211) 26,540,783 (3,733,291)

Add: Non-deductible expenses 69,505,724 28,250,465 69,505,724 28,250,465

96,024,074 24,497,254 96,046,506 24,517,174

Less: Deductible expenses (80,919,337) (23,377,846) (80,941,769) (23,377,846)

Taxable profit 15,104,737 1,119,408 15,104,737 1,139,328

Less: Basic exemption limit of MVR 500,000 taken proportionately (250,000) (228,767) (250,000) (228,767)

Profit liable to business profit tax after basic exemption limit 14,854,737 890,641 14,854,737 910,561

Tax calculated at the effective tax rate of 15% 2,228,211 136,584 2,228,211 136,584

Adjustments in respect of previous year 280,530 - 280,530 -

Business profit tax charge 2,508,741 136,584 2,508,741 136,584




24. EARNINGS / (LOSS) PER SHARE

Basic earnings / (loss) per share is calculated by dividing the profit / (loss) attributable to equity holders of the Company by the weighted

average number of ordinary shares in issue during the year.

GROUP COMPANY

2012 2011 2012 2011

Profit/(loss) attributable to equity holders 24,009,610 (8,316,093) 24,032,042 (8,296,173)

Weighted average number of ordinary shares 250,000 250,000 250,000 250,000

Basic earnings/(loss) per share (MVR per share) 96.04 (33.26) 96.13 (33.18)

25. CASH GENERATED FROM/(USED IN) OPERATIONS

Reconciliation of profit/(loss) for the year to cash generated from/(used in) operations:

GROUP COMPANY

2012 2011 2012 2011

Profit / (loss) for the year 26,518,351 (8,179,509) 26,540,783 (8,159,589)

Adjustments for:

-Depreciation and amortisation (Note 6 and 7) 48,732,952 50,951,539 48,732,952 50,951,539

-Loss on sale of property, plant and equipment 1,262,080 779,722 1,262,080 779,722

-Profit on sale of property, plant and equipment (319,167) (396,433) (319,167) (396,433)

-Reversal of provision for doubtful debts (12,401,872) (42,850) (12,401,872) (42,850)

-Provision for/(reversal of) slow/non moving inventories 2,004,444 (1,994,769) 2,004,444 (1,994,769)

-Share of loss from associate (Note 10) - 2,521,727 - 2,521,727

-Interest expenses ( Note 22) 13,359,063 13,487,237 13,359,063 13,487,237

-Interest income (81,653) (5,992,813) (81,653) (5,992,813)

-Impairment charge on asset held for sales - 6,281,387 - 6,281,387

-Impairment of investment - 9,637,499 - 9,637,499

Changes in working capital:

- trade and other receivables 15,552,366 (153,261,227) 15,530,860 (153,265,729)

- inventories 597,767 (5,464,849) 597,765 (5,464,849)

- trade and other payables (23,058,676) 84,487,459 (23,059,604) 84,472,039

Cash generated from / (used in) operations 72,165,653 (7,185,882) 72,165,651 (7,185,882)

In the cash flow statement, proceeds from the sale of property, plant and equipment comprise:

2012 2011 2012 2011

Net book amount (Note 6 & 9) 2,266,909 1,438,721 2,266,909 1,438,721

Loss on sale of property, plant and equipment and assets held for sale (942,913) (383,289) (942,913) (383,289)

Proceeds from sale of property, plant and equipment and assets held for sale

1,323,996 1,055,432 1,323,996 1,055,432




26 DIVIDENDS PER SHARE

Dividends payable are not accounted for until they have been ratified at the Annual General Meeting. Dividend has not been declared

during the year ended 31 December 2012 (2011 : Nil).

27 CONTINGENCIES

CONTINGENT LIABILITIES

The Company had a contingent liability in respect of letters of credit, amounting to MVR 18,488,568 (2011: MVR 9,199,584) at the balance

sheet date.

The Company enjoyed a bank guarantee facility of MVR 30,840,000 (2011 : MVR 30,840,000) at the balance sheet date with Bank of

Maldives Plc for which the Company has given a counter guarantee for the equal amount.

CONTINGENT ASSETS

There were no material contingent assets recognised at the balance sheet date.

28 COMMITMENTS

CAPITAL COMMITMENTS

There were no material capital commitments outstanding at the balance sheet date.

FINANCIAL COMMITMENTS

There were no material financial commitments outstanding at the balance sheet date.

29 RELATED PARTY TRANSACTIONS

The Government of Maldives along with a State owned enterprise Maldives National Shipping Limited owns 55.3% equity shares of the

Company, has substantial interest in the voting power of Housing Development Corporation Limited, State Trading Organization Plc, Bank

of Maldives Plc, Maldives Airport Company Limited, Maldives Tourism Development Corporation PLC and Maldives Industrial Fisheries

Company Limited. Maldives Real Estate Investment Corporation Pvt Ltd is fully owned subsidiary of Maldives Transport and Contracting

Company Plc. The Company holds one-third of the share capital of Airport Investment Maldives Private Limited.

The following transactions were carried out, on commercial terms and conditions, with related parties:




(I) SALES OF GOODS AND SERVICES

GROUP COMPANY

2012 2011 2012 2011

Maldives Industrial Fisheries Company Limited 313,357 345,443 313,357 345,443

State Trading Organization Plc 1,464,972 2,479,410 1,464,972 2,479,410

Maldives Airport Company Limited 1,537,651 2,569,145 1,537,651 2,569,145

Housing Development Corporation Limited 8,266,427 11,947,006 8,266,427 11,947,006

Maldives National Shipping Limited - 17,400 - 17,400

Airport Investments Maldives Private Limited 122,400 122,400 122,400 122,400

Maldives Tourism Development Corporation Plc - 130,602 - 130,602

Ministry of Housing and Environment 328,327,442 167,200,843 328,327,442 167,200,843

Ministry of Home Affairs 13,612 - 13,612 -

(I I) PURCHASES OF GOODS AND SERVICES

GROUP COMPANY

2012 2011 2012 2011


Maldives Airport Company Limited 16,307 54,326 16,307 54,326

Fuel Supplies Maldives Private Limited 52,691,851 67,241,666 52,691,851 67,241,666

Maldives National Defence Force 323,067 589,038 323,067 589,038

Other Government related entities 55,928,620 53,678,353 55,928,620 53,678,353

123,259,838 127,124,961 123,259,838 127,124,961

(I I I) YEAR-END BALANCES ARISING FROM SALE / PURCHASE OF GOODS AND SERVICES

GROUP COMPANY

Receivables from related parties (Note 12): 2012 2011 2012 2011

Maldives Industrial Fisheries Company Limited 334,629 300,348 334,629 300,348

State Trading Organisation Plc 149,013 223,250 149,013 223,250

Maldives Airport Company Limited 200,162 227,325 200,162 227,325

Maldives National Shipping Limited 14,000 14,000 14,000 14,000

Maldives Real Estate Investment Corporation Private Limited - - 2,655,071 2,633,564

Housing Development Corporation Limited 2,323,183 6,143,778 2,323,183 6,143,778

Ministry of Housing and Environment 116,251,966 121,930,798 116,251,966 121,930,798

Ministry of Home Affairs 11,337,072 11,323,460 11,337,072 11,323,460

Southern Utilities Limited 1,521,307 2,045,237 1,521,307 2,045,237

Maldives Police Services 1,032,201 1,065,899 1,032,201 1,065,899

Other related parties 17,464,992 7,128,317 17,464,992 7,128,317

150,628,525 150,402,411 153,283,596 153,035,976

Southern Utilities Limited 3,901,899 10,772,675 3,901,899 10,772,675

Maldives Police Services 347,210 372,120 347,210 372,120

Other related parties 32,630,574 15,937,062 32,630,574 15,937,062

376,925,544 211,894,106 376,925,544 211,894,106




GROUP COMPANY

2012 2011 2012 2011

Payables to related parties (Note 18):


Maldives National Shipping Limited 37,500 - 37,500 -

Maldives Industrial Fisheries Company Limited 306 - 306 -

Maldives Airport Company Limited - 39,649 - 39,649

Fuel Supplies Maldives Private Limited 10,162,949 11,632,148 10,162,949 11,632,148

Maldives National Defence 1,559,819 1,236,752 1,559,819 1,236,752

Airport Investments Maldives Private Limited 5,102,970 5,213,114 5,102,970 5,213,114

Other Government related entities 5,613,773 5,028,140 5,613,773 5,028,140

24,033,681 26,045,408 24,033,681 26,045,408

(IV) LOAN FROM RELATED PARTIES

GROUP COMPANY

2012 2011 2012 2011

Bank of Maldives Plc 3,606,884 23,157,515 3,606,884 23,157,515

Ministry of Finance & Treasury 34,852,896 59,711,152 34,852,896 59,711,152

38,459,780 82,868,667 38,459,780 82,868,667

(V) KEY MANAGEMENT REMUNERATION

GROUP COMPANY

2012 2011 2012 2011

Directors' remuneration 742,067 839,684 742,067 839,684

Key management remuneration 520,761 463,370 520,761 463,370

1,262,828 1,303,054 1,262,828 1,303,054

30 EVENTS AFTER THE BALANCE SHEET DATE

No significant events have occurred since the balance sheet date, which would require adjustments to, or disclosure in, the financial

statements.

The movement in the year can be analysed as follows:

GROUP COMPANY

2012 2011 2012 2011

Beginning of the year 82,868,667 53,570,342 82,868,667 53,570,342

Loans received during the year - 59,711,152 - 59,711,152

Loans repaid during the year (44,408,887) (16,952,864) (44,408,887) (16,952,864)

Foreign exchange loss - (13,459,963) - (13,459,963)

End of the year 38,459,780 82,868,667 38,459,780 82,868,667

Term loans, bank overdraft, LC facility, bank guarantee from Bank of Maldives Plc are secured over MTCC building, MTCC Tower, barges

(kurimagu 10 & 11), tug boats (Tango 6 & 575), steel landing craft (Leema 1) and a dredger (Jarrafa 3). The loan carries an interest of

9.25% per annum. Loan received from Ministry of Finance & Treasury is interest free, unsecured and have no fixed repayment period.

Accordingly, the amount have been shown as falling due within one year.




CORPORATEINFORMATION

GOVERNMENT NO. OF SHARES: 119,661

PUBLIC NO. OF SHARES: 111,643

MNSL NO. OF SHARES: 18,696

COMPANY NAMEMALDIVES TRANSPORT AND CONTRACTING COMPANY PLC

COMPANY STATUSREGISTERED AS A PUBLIC LIMITED COMPANY WITH MINISTRY OF ECONOMIC

DEVELOPMENT UNDER COMPANY LAW NO. 10/96

REGISTERED OFFICEMTCC TOWER, BODUTHAKURUFAANU MAGU

MALE’ 20057, MALDIVES

PHONE: +960 332 6822

FAX: +960 332 3221

EMAIL: [email protected]

WEBSITE: www.mtcc.com.mv

REGISTRATION NO.

C - 680

REGISTRATION DATE18TH DECEMBER 1980

COMPANY SECRETARYMS. FATHIMATH LIUSHA

SHARE STRUCTURE


BANKERS, AUDITORS & LAYWERS

BANKERS

AUDITORS

LAWYERS

BANK OF MALDIVES PLC.

BODUTHAKURUFAANU MAGU,


PHONE +960 333 0102

FAX: +960 332 8233


WEBSITE: WWW.BANKOFMALDIVES.COM.MV

HABIB BANK LIMITED

H. THUNIYA, GROUND FLOOR, BODUTHAKURUFAANU

MAGU, MALE’ 20066, MALDIVES

PHONE: +960 332 2051

FAX: +960 332 6791


WEBSITE: WWW.HBL.COM

INTERNAL:

KPMG FORD, RHODES, THORNTON & CO. MALDIVES

H. MIYALANI, 2ND FLOOR, SOSUN MAGU, MALE’, 20069,

MALDIVES

PHONE: +960 331 0420

FAX: +960 332 3175


WEBSITE: WWW.KPMG.COM

MAZLAN & MURAD LAW ASSOCIATES

G.SWAN LAKE, 1ST FLOOR, DHARUMAVANTHA MAGU,

MALE’, MALDIVES

PHONE: +960 334 4720

FAX: +960 334 4721


WEBSITE: WWW.MMLAWASSOCIATES.COM

FROM 01 DECEMBER 2012:

SHAH, HUSSAIN & CO. BARRISTERS AND ATTORNEYS

H.AAGE (EAST WING), 2ND FLOOR, 20094

BODUTHAKURUFAANU MAGU, MALE, MALDIVES

PHONE: +960 333 3644

FAX: +960 331 5453


WEBSITE: WWW.SHCLAWYERS.COM

HSBC LIMITED

MTCC TOWER, 1ST FLOOR, BODUTHAKURUFAANU,

MAGU, MALE’ 20057, MALDIVES

PHONE: +960 333 0770

FAX: +960 331 2072


WEBSITE: WWW.MALDIVES.HSBC.COM

STATE BANK OF INDIA

H.SUNLEET, BODUTHAKURUFAANU MAGU,

MALE’, MALDIVES

PHONE: +960 331 2111

FAX: +960 332 3053


WEBSITE: WWW.SBIMALDIVES.COM

MALDIVES ISLAMIC BANK

AMEERAHMED MAGU, MALE’ 20030, MALDIVES

PHONE: +960 332 5555

FAX: +960 300 7885


WEBSITE: WWW.MIB.COM.MV

EXTERNAL:

PRICEWATERHOUSE COOPERS

H.THANDIRAIMAAGE, 3RD FLOOR, ROASHANEE MAGU,

20124, MALE’, MALDIVES

PHONE: +960 331 8342

FAX: +960 331 4601


WEBSITE: WWW.PWC.COM

BANK OF CEYLON

AAGE, BODUTHAKURUFAANU MAGU,


PHONE: +960 331 4764

FAX: +960 332 0575


WEBSITE: WWW.BOC.LK


DEPARTMENT'SCONTACT INFORMATION

FINANCE DEPARTMENT

MTCC TOWER , 3RD FLOOR,

BODUTHAKURUFAANU MAGU ,

MALE’

POST CODE : 20057

PHONE : +960 332 6822

FAX : +960 331 5500

EMAIL : [email protected]

CORPORATE DEPARTMENT

MTCC TOWER , 7TH FLOOR,


MALE’

POST CODE : 20057

PHONE : +960 332 6822

FAX : +960 332 3221


INFORMATION COMMUNICATION

TECHNOLOGY DEPARTMENT



MALE’

POST CODE : 20057

PHONE : +960 332 6822

FAX : +960 332 3221


HUMAN RESOURCES DEPARTMENT

MTCC TOWER , 2ND FLOOR,


MALE’

POST CODE : 20057

PHONE: +960 332 6822

FAX: +960 332 3221


PROCUREMENT DEPARTMENT

H.SAWMILL, BODUTHAKURUFAANU MAGU,

MALE’

POST CODE : 20002

PHONE: +960 332 6822

FAX: +960 331 5005


LOGISTICAL OPERATIONS DEPARTMENT

H.SAWMILL, BODUTHAKURUFAANU MAGU,

MALE’

POST CODE : 20002

PHONE: +960 332 6822 / 300 1477 / 300 1484

FAX: +960 332 2828


INTERNAL AUDIT DEPARTMENT

H.SAWMILL, BODUTHAKURUFAANU

MAGU,

MALE’

POST CODE : 20002

PHONE: +960 332 6822

FAX: +960 334 6806


BUSINESS DEVELOPMENT DEPARTMENT

MTCC TOWER , 3RD FLOOR,


MALE’

POST CODE : 20057

PHONE: +960 332 6822

FAX: +960 332 3221


CONSTRUCTION AND

PROJECTS MANAGEMENT DEPARTMENT



MALE’

POST CODE : 20057

PHONE: +960 332 6822

FAX: +960 333 2835


TRANSPORT SERVICES DEPARTMENT

DHATHURUVEHI 3, BODUTHAKURUFAANU

MAGU , MALE’

PHONE : +960 331 5050 / 332 9076 / 333 8585

FAX : +960 334 5826


TRADING DEPARTMENT

H.SAWMILL,

BODUTHAKURUFAANU MAGU,

MALE’

POST CODE : 20002

PHONE: +960 332 6822 / 331 8080

FAX: +960 331 4050


CORPORATE BUREAU


BODUTHAKURUFAANU MAGU , MALE’

POST CODE : 20057

PHONE : +960 332 6822

FAX : +960 332 3221


ALL AMOUNTS ARE IN MALDIVIAN RUFIYAA UNLESS · 4. 4.1 Presentation and conﬁrmation of the 2012...

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Transcript of ALL AMOUNTS ARE IN MALDIVIAN RUFIYAA UNLESS · 4. 4.1 Presentation and conﬁrmation of the 2012...