RAS AL KHAIMAH CEMENT COMPANY P.S.C. RAS A KHAIMAH … and Financial Statement... · 2010-08-01 ·...

RAS AL KHAIMAH CEMENT COMPANY – P.S.C.

RAS AL KHAIMAH

UNITED ARAB EMIRATES

CONDENSED INTERIM FINANCIAL

STATEMENTS AND REVIEW REPORT

FOR THE THREE-MONTH PERIOD ENDED

MARCH 31, 2010


RAS AL KHAIMAH


Table of Contents

Page Exhibit

Report on Review of Condensed Interim Financial Information 1 --

Condensed Statement of Financial Position 2 A

Condensed Statement of Income 3 B

Condensed Statement of Comprehensive Income 4 C

Condensed Statement of Changes in Equity 5 D

Condensed Cash Flow Statement 6 E

Notes to the Condensed Interim Financial Statements 7 – 11 --


RAS AL KHAIMAH


CONDENSED STATEMENT OF INCOME

FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2010 (UNAUDITED)

EXHIBIT B

Three-month period ended

Notes March 31,

2010

March,31

2009

(Unaudited) (Unaudited)

AED AED

70,214,085 97,725,882 Sales (66,109,668) (66,256,999) Cost of sales ___________ __________ Gross profit 4,104,417 31,468,883 Other income 1,039,548 923,652 Marketing expenses (180,619) (234,128) Administrative expenses (3,371,679) (3,203,703) Finance costs (111,251) (171,821)

Share of profit of an associate 4 1,552,262 613,400 __________ ___________

Profit for the period – Exhibit C 3,032,678 29,396,283

__________ __________

Basic earnings per share 0.006 0.061 ========= =========

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF

THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

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RAS AL KHAIMAH


CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE THREE-MONTH PERIOD ENDED MARCH 31, 2010 (UNAUDITED)

EXHIBIT C

Three-month period ended

March 31,

2010

March,31

2009


AED AED

Profit for the period – Exhibit B 3,032,678 29,396,283

Other comprehensive income

Board of directors’ remuneration (2,160,000) (2,400,000)

__________ __________

TOTAL COMPREHENSIVE INCOME

FOR THE PERIOD – EXHIBIT D

872,678

26,996,283

========= =========


THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

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RAS AL KHAIMAH


CONDENSED CASH FLOW STATEMENT

FOR THE PERIOD ENDED MARCH 31, 2010 (UNAUDITED) EXHIBIT E

March 31,

2010

March 31,

2009


AED AED

Cash Flows from Operating Activities

Profit for the period – Exhibit B 3,032,678 29,396,283

Adjustments for:

Depreciation 6,703,936 5,546,569

Provision for capital spare parts 37,754 61,222

End of service benefits 420,836 83,944

Interest income (844,463) (874,298)

Profit on sale of property and equipment (25,223) --

Share of profit of an associate (1,552,262) (613,400)

Finance costs 3,371,679 171,821

Profit before working capital changes 11,144,935 33,772,141

Decrease / (increase) in inventories 3,226,119 (8,310,912)

Increase in due from an associate (5,924,798) --

(Increase) / decrease in trade and other receivables (12,801,039) 26,991,031

Increase / (decrease) in trade and other payables 5,687,527 (16,425,871)

Cash generated from operations 1,332,744 36,026,389

Finance costs paid (3,371,679) (171,821)

Net cash (used in)/provided by operating activities (2,038,935) 35,854,568

Cash Flows from Investing Activities

Purchase of property and equipment (364,298) (299,040)

Disposal of capital spare parts 42,893 62,036

Proceeds from sale of property and equipment 41,399 --

Investment in an associate -- (40,000,000)

Investment in project -- (750,000)

Interest income received 844,463 1,092,477

Net cash provided by/(used in) investing activities 564,457 (39,894,527)

Cash Flows from Investing Activities

Dividend paid -- (53,240,000)

Board of directors’ remuneration paid (2,160,000) (2,400,000)

Short term borrowings from bank 8,692,782 (18,292,215)

Net cash provided by / (used in) financing activities 6,532,782 (73,932,215)

Net Increase / (decrease) in cash and cash equivalents 5,058,304 (77,972,174)

Cash and cash equivalents at beginning of the period 91,742,847 94,279,209

__________ __________

CASH AND CASH EQUIVALENTS AT END OF THE

PERIOD – Note 7 & Exhibit A 96,801,151 16,307,035

========= =========


THESE CONDENCED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

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RAS AL KHAIMAH


NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED MARCH 31, 2010 (UNAUDITED)

________________________________________________________________________________________

1. GENERAL INFORMATION:

Ras Al Khaimah Cement Company – P.S.C. (the “Company”) is a public

shareholding company incorporated in Ras Al Khaimah by Amiri Decree number 4 dated

May 27, 1995 issued by H.H. Sheikh Saqr Bin Mohammad Al Qassimi, The Ruler of

the Emirate of Ras Al Khaimah. The Company was duly registered according to the

law with the official competent authorities and Ministry of Economy and Commerce.

The ministerial decision number 7 concerning approval of the Company’s incorporation

was issued on February 11, 1996. The Company is listed in Abu Dhabi Securities

Market.

The principal activity of the Company is producing and marketing portland cement. The

Company has started its commercial production on April 1, 2000.

2. BASIS OF PREPARATION OF CONDENSED INTERIM FINANCIAL

STATEMENTS:

The condensed interim financial statements have been prepared in accordance with the

International Financial Reporting Standards ("IFRS") IAS 34 Interim Financial

Reporting. They do not include all the information required for full annual financial

statements, and should be read in conjunction with the financial statements of the

Company as at and for the year ended December 31, 2009.

In preparing these condensed interim financial statements, the significant judgments

made by the management in applying the Company's accounting policies and the key

sources of estimation uncertainty were the same as those that applied to the financial

statements as at and for the year ended December 31, 2009. In addition, results for the

three-month period ended March 31, 2010 are not necessarily indicative of the results

that may be expected for the financial year ending December 31, 2010.

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RAS AL KHAIMAH



FOR THE PERIOD ENDED MARCH 31, 2010 (UNAUDITED) Continued…

_______________________________________________________________________________________

4. INVESTMENT IN AN ASSOCIATE:

a) Investment in an associate represents the Company’s investment in Reem Ready Mix

LLC, Abu Dhabi. The total number of shares acquired is 6,000 shares of AED

1,000/- each. The Company presently possesses 20% of the shareholders’ capital of

Reem Ready Mix LLC. Investment in an associate is accounted for using the equity

method. The details are as follows:

AED

Cost (6,000 shares of AED 1,000/-each) 6,000,000

Goodwill on acquisition – Note 4 (b) 34,000,000

Total acquisition cost 40,000,000

Share of profit for the year 2009 10,394,396

Balance as on December 31, 2009 (Audited ) – Exhibit A 50,394,396

Less: dividend receivable (4,000,000)

Share of profit for the period 1,552,262

Balance as on March 31, 2010 (Unaudited) – Exhibit A 47,946,658

========

b) Goodwill amounting to AED 34,000,000 has arisen on acquisition of the shares in an

associate, Reem Readymix LLC. Goodwill is initially measured at cost and is tested

for impairment annually (at 31 December) and when circumstances indicate that the

carrying value may be impaired. Impairment is determined by assessing the

recoverable amount of goodwill and where the recoverable amount is less than

carrying amount; an impairment loss is recognized in current year’s income

statement.

5. AVAILABLE-FOR-SALE INVESTMENTS:

a) The movement over these investments are as follows:

March 31,

2010 December 31,

2009

(Unaudited) (Audited)

AED AED

At January 1, 42,540,496 30,613,254

Addition during the period -- 15,534,000

Impairment loss on investments -- (3,606,758)

___________ ___________

Net - Exhibit A 42,540,496 42,540,496

========= =========

b) The above investments are classified as follows:

March 31,

2010 December 31,

2009


AED AED

Unquoted investments 42,477,242 42,477,242

Quoted investment 63,254 63,254

Total 42,540,496 42,540,496

======== ========

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RAS AL KHAIMAH




_______________________________________________________________________________________

5. AVAILABLE-FOR-SALE INVESTMENTS: (continued…)

c) Available-for-sale investments are classified into the following business segments:

March 31,

2010 December 31,

2009


AED AED

Investment in an airline company 12,797,867 12,797,867

Investment in a petroleum company 3,945,375 3,945,375

Investment in a power company 2,250,000 2,250,000

Investment in construction company 13,284,000 13,284,000

Investment in financing companies 10,263,254 10,263,254

Total 42,540,496 42,540,496

======== ========

d) The entire available-for-sale investments amounting to AED 42,540,496 as shown

above had been invested in local market of United Arab Emirates.

6. DUE FROM AN ASSOCIATE:

Due from an associate as shown in Exhibit A represents amount due from Reem Ready

Mix LLC as of the financial statements date. The detail is as follows:

March 31,

2010 December 31,

2009


AED AED

Account receivables 18,402,831 12,478,033

Dividend receivable 4,000,000 -- ____

Total - Exhibit A 22,402,831 12,478,033

======== ========

7. CASH AND CASH EQUIVALENTS:

This item comprises of the following:

March 31,

2010 December 31,

2009


AED AED

Petty cash account 34,500 34,500

Cash on hand 19,900 6,660

Current account with bank 37,264 37,265

Dividend payment deposit account 1,514,135 1,514,135

Call deposit with bank 5,195,352 5,150,287

Fixed deposits with maturity of

three months or less

90,000,000

85,000,000

_________ _________

Net – Exhibit A 96,801,151 91,742,847

======== ======== -10-


RAS AL KHAIMAH




_______________________________________________________________________________________

8. CAPITAL COMMITMENTS:

As at March 31, 2010, the Company has contractual capital commitments

amounting to AED 5,344,430 related to its ongoing projects.

9. CONTINGENT LIABILITIES:

The Company had issued corporate guarantees and letters of credit to third

parties. The details are as follows:

March 31,

2010 December 31,

2009


AED AED

Bank letters of credit 1,939,499 8,705,099

Bank letters of guarantee 60,000 60,000

10. APPROVAL OF CONDENSED INTERIM FINANCIAL STATEMENTS:

The condensed interim financial statements were approved by the Chairman of

the Board of Directors and authorized for issue on April 18, 2010.

11. GENERAL:

a) Certain figures have been reclassified, wherever necessary, to conform to the

presentation adopted in these condensed interim financial statements.

b) The figures in these condensed interim financial statements are rounded to the

nearest Dirham of United Arab Emirates.

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RAS AL KHAIMAH




__________________________________________________________________________________________________________________________________________________

3. PROPERTY, PLANT AND EQUIPMENT:

a) Property, plant and equipment have been stated at cost less accumulated depreciation up to the interim condensed financial statements’ date, as follows:

Cost

Factory

Building

Plant &

Equipment

Mobile

Equipment &

Passenger Cars

Office

Furniture &

Equipment

Land

Improvements

Specialized

& loose

tools

Total

AED AED AED AED AED AED AED

At January 1, 2010 24,117,628 707,430,049 3,049,989 3,093,340 806,190 497,472 738,994,668

Additions -- 364,298 -- -- -- -- 364,298

Disposals -- -- (74,500) -- -- -- (74,500)

__________ ___________ __________ __________ __________ __________ ___________

At March 31, 2010 24,117,628 707,794,347 2,975,489 3,093,340 806,190 497,472 739,284,466

Accumulated Depreciation

At January 1, 2010 8,278,381 210,096,723 1,767,385 2,331,814 693,397 74,641 223,242,341

Charge for the period 192,190 6,280,102 118,414 81,995 31,235 -- 6,703,936

Disposals -- -- (58,324) -- -- -- (58,324)

__________ ___________ __________ __________ __________ __________ ___________

At March 31, 2010 8,470,571 216,376,825 1,827,475 2,413,809 724,632 74,641 229,887,953

Carrying Amount

At December 31, 2009 (Audited) – Exhibit A 15,839,247 497,333,326 1,282,604 761,526 112,793 422,831 515,752,327

========= ========= ========= ========= ======== ========= =========

At March 31, 2010 (Unaudited) – Exhibit A 15,647,057 491,417,522 1,148,014 679,531 81,558 422,831 509,396,513

========= ========= ========= ========= ======== ========= =========

b) The Company's plant is constructed on a leased land renewable on annual basis.

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RAS AL KHAIMAH


CONDENSED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED MARCH 31, 2010 (UNAUDITED)

EXHIBIT D

Share

capital

Reserves

Cumulative changes

in fair value of

investment in shares

Retained

earnings

Net

DESCRIPTION AED AED AED AED AED

Shareholders’ Equity at December 31, 2008 (Audited) 484,000,000 110,906,454 (266,917) 208,390,300 803,029,837

Profit for the period – Exhibit B -- -- -- 29,396,283 29,396,283

Board of directors’ remuneration paid -- ___ -- ___ -- ___ (2,400,000) (2,400,000) Total comprehensive income for the period – Exhibit C -- ___ -- ___ -- ___ 26,996,283 26,996,283

Cash dividend paid -- ___ -- ___ -- ___ (53,240,000) (53,240,000) Shareholders’ Equity at March 31, 2009 (Unaudited) 484,000,000 110,906,454 (266,917) 182,146,583 776,786,120 ========= ========= ======== ======== ========

Shareholder’s equity at December 31, 2009 - (Audited) - Exhibit A 484,000,000 125,267,442 (266,917) 210,194,253 819,194,778

Profit for the period – Exhibit B -- -- -- 3,032,678 3,032,678

Board of directors remuneration paid -- ___ -- ___ -- __ (2,160,000) (2,160,000)

Total comprehensive income for the period – Exhibit C -- . -- . -- . 872,678 872,678

Cash dividend declared transferred to dividend payable -- ___ -- ___ -- __ (48,400,000) (48,400,000)

At March 31, 2010 (Unaudited) – Exhibit A 484,000,000 125,267,442 (266,917) 162,666,931 771,667,456

========= ========== ======== ========== ==========

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

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RAS AL KHAIMAH CEMENT COMPANY P.S.C. RAS A KHAIMAH … and Financial Statement... · 2010-08-01 ·...

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