National Cement Company (Public Shareholding Co.)
UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS
30 JUNE 2022
Ernst & Young Middle East | Tel: | +971 4 | 701 0100 |
(Dubai Branch) | Fax: | +971 4 | 332 4004 |
P.O. Box 9267 | dubai@ae.ey.com | ||
Ground Floor, ICD Brookfield Place | ey.com/mena | ||
Al Mustaqbal Street | |||
Dubai International Financial Centre | |||
Dubai | |||
United Arab Emirates |
REPORT ON REVIEW OF INTERIM CONDENSED FINANCIAL STATEMENTS TO THE SHAREHOLDERS OF NATIONAL CEMENT COMPANY (PUBLIC SHAREHOLDING CO.)
Introduction
We have reviewed the accompanying interim condensed financial statements of National Cement Company (Public Shareholding Co.) (the "Company") as at 30 June 2022, which comprise the interim statement of financial position as at 30 June 2022, and the related interim statements of profit or loss and other comprehensive income for the three-month and six-month periods then ended, and the related interim statements of changes in equity and cash flows for the six-month period then ended, and explanatory notes. Management is responsible for the preparation and fair presentation of these interim condensed financial statements in accordance with IAS 34 International Accounting Standard (IAS 34). Our responsibility is to express a conclusion on these interim condensed financial statements based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing. Consequently, it does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Basis for Qualified Conclusion
As disclosed in Note 9 to the interim condensed financial statements, as at 30 June 2022, the Company has investment in an unquoted equity investment classified as Fair Value through Other Comprehensive Income (FVOCI) amounting to AED 41,868 thousand. We were not provided with sufficient appropriate audit evidence supporting the measurement of fair value as of the reporting date. As a result, we are unable to determine whether any adjustment to the carrying amount of the investment was necessary as at 30 June 2022.
Qualified Conclusion
Based on our review, with the exception of the matter described in the Basis for Qualified Conclusion section of our report, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial statements is not prepared, in all material respects, in accordance with IAS 34, 'Interim Financial Reporting'.
For Ernst & Young
Signed by:
Ashraf Abu Sharkh
Partner
Registration No. 690
9 August 2022
Dubai, United Arab Emirates
A member firm of Ernst & Young Global Limited
National Cement Company (Public Shareholding Co.)
INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
For the six months ended 30 June 2022
Six months ended | Three months ended | ||||
──────────────────── | ──────────────────── | ||||
30 June 2022 | 30 June 2021 | 30 June 2022 | 30 June 2021 | ||
Notes | AED'000 | AED'000 | AED'000 | AED'000 | |
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||
Revenue | 68,149 | 73,060 | 29,157 | 27,551 | |
Direct costs | 3 | (79,571) | (89,917) | (31,154) | (36,704) |
──────── | ──────── | ──────── | ──────── | ||
GROSS LOSS | (11,422) | (16,857) | (1,997) | (9,153) | |
Other operating income | 4 | 5,700 | 5,385 | 2,449 | 2,713 |
Administration and general expenses | 5 | (13,810) | (10,697) | (8,210) | (5,025) |
Selling and distribution expenses | (2,179) | (1,894) | (1,083) | (935) | |
──────── | ──────── | ──────── | ──────── | ||
OPERATING LOSS | (21,711) | (24,063) | (8,841) | (12,400) | |
Finance income | 6 | 11,290 | 12,745 | 6,815 | 6,390 |
Finance cost | (1,329) | (2,188) | (694) | (850) | |
Dividend income from equity investments | 13,357 | 8,879 | 13,357 | 8,879 | |
Net change in fair value of debt | (5,386) | (3,607) | |||
instruments at FVTPL | 9 | 8,161 | 3,023 | ||
Fair value of debt instruments at FVOCI | (7,149) | - | (547) | - | |
recycled to profit and loss on derecognition | |||||
──────── | ──────── | ──────── | ──────── | ||
(LOSS)/PROFIT FOR THE PERIOD | (10,928) | 3,534 | 6,483 | 5,042 | |
════════ | ════════ | ════════ | ════════ | ||
Other comprehensive (loss)/ income | |||||
Items that will not be reclassified to | |||||
profit or loss in subsequent periods: | |||||
Net change in fair value of | (78,313) | (150,358) | |||
equity instruments at FVOCI | 9 | 87,525 | 41,642 | ||
Items that may be reclassified | |||||
to profit or loss in subsequent periods: | |||||
Net change in fair value of | (3,281) | (1,030) | |||
debt instruments at FVOCI | 9 | 1,026 | 1,151 | ||
Fair value of debt instruments at FVOCI | 7,149 | - | 547 | - | |
recycled to profit and loss on derecognition | |||||
──────── | ──────── | ──────── | ──────── | ||
Other comprehensive | (74,445) | (150,841) | |||
(loss)/income for the period | 88,551 | 42,793 | |||
Total comprehensive | ──────── | ──────── | ──────── | ──────── | |
(85,373) | (144,358) | ||||
(loss)/income for the period | 92,085 | 47,835 | |||
Earnings per share | ════════ | ════════ | ════════ | ════════ | |
Basic and diluted earnings | (0.03) | 0.02 | |||
per share (AED) | 18 | 0.01 | 0.01 | ||
════════ | ════════ | ════════ | ════════ |
The attached notes 1 to 23 form part of these interim condensed financial statements.
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National Cement Company (Public Shareholding Co.)
INTERIM STATEMENT OF CHANGES IN EQUITY
For the six months ended 30 June 2022
Fair value | |||||||
Share | reserve | ||||||
Share | application | Statutory | General | of financial | Retained | Total | |
capital | money | reserve | reserve | assets at FVOCI | earnings | equity | |
AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | |
Balance as at 1 January 2022 (Audited) | 358,800 | 26 | 179,402 | 313,323 | 810,514 | 56,803 | 1,718,868 |
Loss for the period | - | - | - | - | - | (10,928) | (10,928) |
Other comprehensive loss for the period | - | - | - | - | (74,445) | - | (74,445) |
──────── | ──────── | ──────── | ──────── | ──────── | ──────── | ──────── | |
Total comprehensive loss for the period | - | - | - | - | (74,445) | (10,928) | (85,373) |
──────── | ──────── | ──────── | ──────── | ──────── | ──────── | ──────── | |
Dividend paid (Note 23) | - | - | - | - | - | (35,880) | (35,880) |
──────── | ──────── | ──────── | ──────── | ──────── | ──────── | ──────── | |
As at 30 June 2022 (Unaudited) | 358,800 | 26 | 179,402 | 313,323 | 736,069 | 9,995 | 1,597,615 |
════════ | ════════ | ════════ | ════════ | ════════ | ════════ | ════════ | |
Balance as at 1 January 2021 (Audited) | 358,800 | 26 | 179,402 | 313,323 | 497,852 | 7,832 | 1,357,235 |
Profit for the period | - | - | - | - | - | 3,534 | 3,534 |
Other comprehensive income for the period | - | - | - | - | 88,551 | - | 88,551 |
──────── | ──────── | ──────── | ──────── | ──────── | ──────── | ──────── | |
Total comprehensive income for the period | - | - | - | - | 88,551 | 3,534 | 92,085 |
──────── | ──────── | ──────── | ──────── | ──────── | ──────── | ──────── | |
As at 30 June 2021 (Unaudited) | 358,800 | 26 | 179,402 | 313,323 | 586,403 | 11,366 | 1,449,320 |
════════ | ════════ | ════════ | ════════ | ════════ | ════════ | ════════ |
The attached notes 1 to 23 form part of these interim condensed financial statements.
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National Cement Company PSC published this content on 10 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 August 2022 05:43:06 UTC.