Aamal Company Q.S.C. CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER - - PDF document

SLIDE 1

Aamal Company Q.S.C.

CONSOLIDATED FINANCIAL STATEMENTS

31 DECEMBER 2013

SLIDE 2

Aamal Company Q.S.C.

CONSOLIDA TED ~INANCIAL STATEMENTS

31 December 20 1 3 Contents Page(s) Lndependent auditors' report 1-2 Consolidated financi al :statements Consolidated statemellt f fiJ)anciai position 3 Consolidated statement f income 4 Consolidated statement f comprehensive income 5 ConSOlidated statement f casb nows

6

Coosolidsted statement f changes in equity 7 Notes to tile consolidated flJlaocial statements 8­46

I

SLIDE 3

Tejephc>r1e ...974 4457 6444

Audit

Fax +974 4442 ,5626 2nd Floor

WEbsite www.kpmg.com.qa

An2a 25, C Ring Road PO Box 4473, Doha

State ot Oatar

KPMG

Independent auditors' report To The Shareholders Aamal Company Q.S.c. Doha State of Qatar Report on the consolidated financial statements We have audited the accompanying consolidated financial statements of Aamal Company Q.S.c. (the "Company") and its subsidianes (together referred to as the "Group"), which comprise the consolidated statement

• f financial position as at 31 December 2013 and tbe consolidated statements of income, comprehensive income,

cash flows and changes in equity for the year then ended, and notes, comprising a sUnUnUl)' of significant accounting policies and other explanatory information. Directors' re.fponsibifify for Ihe consolidated financial statements The directors are responsible for the preparal10n and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as the directors detemlinc is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error,

A

~Idilors'

respol1sibilily

Our responsibility is to express an opinion on these consolidated 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 perfonn the audit to obtain reasonable assurance about whether the consolidated financial statements arc free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the consolidated finanCial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Group·s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the pUlllose of expressing an opinion on the effectiveness of the Group's internal

• control. An audit also includes evaluating the appropriateness of accountmg policies used and the reasonableness
• f accounting estimates made by the management, as well as evaluating the overall presentation of the

consolidated financial statements. We beli eve that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit

• pinion.

Oplllion

In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at 31 December 2013 and its consolidated financial performance and consolidated cash flows for the year then ended in accordance with International Financial Reponing Standards.

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SLIDE 4

Report 00 other legal A nd regulaiory requirements We have obtained all the inf

• rmation and ex:planations which we consider necessary for the pUipose of our audit.

The Group has maintained proper accounting records aod the consolidated financial statements are in agreement therewith and we COllfi.rOl that the physical count of inventories was carried OUi as per the established principles. We have reviewed the accompanying repon of the Board of Directors and confinn that the financial infonnation contained therein is in agreement with the books and records of the Company. We are not aware of any violations

• f the provisions of Qatar Commercial Companies' law No. S of 2002 or the tenns of Article of Association

having otttured during the year which might have had a material adverse effect on the business of the Company

• r its consolidated finiUlcial position as at 31 December 20 13.

20 February 20 14 Gopa l Balasubramaniam Doha

KPMG

State of Qatar Qatar Auditors Regislry Number 251

Independent auditors' rep0l1 (continued) ­ Aamal Company Q.s.c.

SLIDE 5

Aamal Company Q.S.C.

CONSOLIDATED STATEMENT OF FINANCIAL POSlTlON

AI J I December 2013 ASSETS

Current assets

Cash and bank balances

Accounts receivable and prepayments Amounts due from related parties Invento ries NOD­current lI$sft~ A vuilable­for­sale investments

Equity­accounted illveste:es

Investment properties

• Properly. plaIU arid equipment

TOTAL ASSETS LiADILITIES AND EQUITY Curnn! Jj~biljtit5

Bank overdrafts

ACCOUntS payable and accruals Amounts due 1 0 related panies Interest bearing loans aM borrowings Non­Curr(DI liabilities

Interest bearing loans and borrowings Employees' end of service benefits

TOlRllitbililits

EQUiTY

Share capital Legal reserve

Treasury shares Cumul:ui ve ch8llge in fair v:lIue

Retained earnings

Equity attributable to equ ity holders of the pa rcnt Non­cOnlIOII ing interests

Note 5 6

7

8

9

I.

"

5

12 IJ

14 14

15

16 17

20/3 QR 436,136,756 510,089,839 214,439,950 316,699,545 I,4 77,366,090 24 ,983 1 33,106,907 6,402,486,000 519,970,890 7,0551588,780 8,532,954,870 6,836,280 445,046,573 48,199,591 749,520,820 J,249,6031264 165,384,481 19,957,976 185,342 ,457 1,434,945,72 1 6,000,000,000 378,132,552 (2,075,865) 4,069 526,628,214 6,902,688,970 195,320,1 79

2012 QR 367,88 1,29 1 482,281 ,775

171 ,525,363 401 .902,873 1,423 ,59 1,302

1 8,963

126,669,99 1

6,11 3,347,018 449,527,258 6,689,563 ,230 8,113,154 ,532 2,885,090 379,119,069 49,737,757 825 ,568,489 1,257,310,405 239,276,807

18,111 ,763

257,388,570 1,514,698.975 5,445,000,000 327,445,101 (2,07 5,865)

(416)

638,248,275 6,408,617,095 189,838,462 7,098,009,149 6,59814551557

TOTAL I,.!ABII,.ITIES AND EQUITY

8,532,954,870 8,113,154,532

Mohammad Rrunah i

Chitf Financial Officer The artaehcd notes I \0 33 fonn an integral pan of these consolid;lIed financial statements,

3

SLIDE 6

CO">SOLIDATED STATE,,!ENT OF INCOME

For tM year ended 31 Dec,;­mixr 2013

No!t!

Reve'lue lR Diroctcnstb

19 GROSS PROFIT Other income

20 Markelillg and promotion expenses Geternl MO adm.inistrativ¢ cxpenS\:'s

21

Dv;m;:;:iation

Fine nee CDS!:;

22

Shure of profits ofequity<l(;COUnleci ~nvestes

9

PROFIT REVORE FAIR VALUE GAINS ON t:;Vf"ST:\n::l\T PROPERTJES Net fuil vl1lue g<llns or lnvest:ne­Ilt prcpc(li~

10

PROFIT FOR THE YEAJt

Pmilt?ltributnble to:

Equit:' holcefS of

tift parent

;.J(jI1~r.tro!ing

In.reres:.:;

l)3~it.and

diluted eanli.ngs per share (QR)

(RITnoutable 10 cqujry holders of the parerl}

23

;Jon

QR 2,1,22,595,133 _ (1,702,139,1::11)

419,455,956 I {,516,688 (18,995,918) (109,981,101) (9,331,061) (44,930,877) .. __~)49,901

267.233;582

245,051,107

~-~

506,874,5(17

,_,~

§,4,JQ!!82

~Jl4'!lL

(L85

~,~-

2012 QR

2,(69)36,372

J~S9,65:i.016J

41YJ,6S::U56

16,199,921 (J I ,L66.J 47)

(,25,'62,8J2)

(9,4.7 3,007) (58,063,809­]

_~3JA01:.!04

2J5,72 1,006 3R3,m,,183 _,-_2d~

594,892,946

~2S1:?4~

zi~:!L 0.49

• ~-,-.,.

The zltached notes j to 33 f01111 an integral part of these t.'O!l50hdared financial S!;1t<;lTWpl$,

SLIDE 7

Aamal Company Q.S.c.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For Ibe year eoded 3 1 December 201 3

2013 QR Profit for the year 512,284,689 Other comprehensive income Items that are or may be reclassified to profit or loss Unreatised gain on available­for­sale investments

6,020

TOTAL COIVIPR£HENSIVE INCOME fOR THE YEAR 512,290,709 TotaJ co mprehensive income attributable to: Equity holders of the parent

506,878,992

Non­controUing interests 5,411,7 17 512,290,709 101 1

QR

624,5 13,489

109,582

624,623,071 594,892,530 29,73 0,541 624,623,07 1 The (luached notes I 10 33 form an integral part ofthese consolidated financial statements.

,

SLIDE 8

~"'amal

Company QSC.

CONSOL!DATED STATEMENT OF CASH FLOWS

For the year ended 31 December 2013

OPERATING ACTl'VlT1ES Profit fot ioc year

Adjustment for: Net fuirvall;.e gaj0.i on :ove::::rncnt properties D;;preciation

Provisio~

fOf .employlXs' end ofseevie<::: benefits:

Barga!c: purchas<: gAin

Allowance for i;np~inueO\

• f trde accom;is receIvable

(Proritl!loss on dJs;x>sel of property, piaU( ;;06 equiprnent Provision fot slow moving Jllvet\lories

lJlterest ;n\:ome

finance oosts Share of profit ofeqUlry­accoumcd inveslces Operaling profit oo:orc working capital changes: JllvtntorifS AU(lIJJlt;t receiwl.bk and prepayme:rt1S

/\ccoums payab!e And accruals

~et

!l)OVem;!;1t in amounts due from and due to rd:m>;i panie:; Cash from operation.,;

Finance coStS p<lid End of SCfVtCe benefits paid Net Leasb from opcr:l!ing 3ctiviti<:5

INVEsnXG A(:T1\,TTI.f.S Xnt<:resl income ra:eivcd

Proceeds from disposal of property, piii:1i and equipment Divicieflds rece;';;d tTom a j(;im venlure Additions to inveslmeul properties

Acquisition of;, subsitlittry, net of cush Jzquired A..;quisitioll from non­controlling il]tw:~st

Additions 10 property, plant ()nd equipment Net cash used in inv<>.liing :J.ctivii!(lS

FINA:'Cl:XC ACrlVrnrs :..rt't moverncl1! in inteft'st bearing tiJ4!1S al1d borrOWings ConlribIH\(ll:S from non.contto!hng interests.

Net cash tlllied in)!ftom hnfCncmg acti"V1!ies lNeREM¥. IN CASH ANn CASH EQlJlVAUVIS Det:rease to casr, due to 10~S

• f

crm!::"ol ofa subsidiary Increase in cash 1t5ulttd in obtaining the con'h)\ of

il­n Il$$o;,:i;l\e

Cash and ca.<,r, {'qui"V"lenls at 1 JanuJry CASH AND ('i\5iH EQt:tVALENTS AT 31 DECEMBER 5

NolO

10

15

20

21

20 S

20 22

9

"

is

20

9 10

4 4

"

11)13

QR

512,284,6&9 (245,(;51,101) 4lA95,449

4,056,969

2,294,590 (737,647) 2,380,611 (2,$24,216) 44,9'30,$77 .._~49,901l 341,33{l,:no 82,8.22,711 (3{l,H12,654) 53,12iL387

~82,753)

4112,788,011 (45,056,522)

_.t2,21Q,7S6)

35S,52q,733 2,824,116 1,274,457

11,992,11 85 {9,568,U47)

.Jl!~,870)741

_

(141_~:346,4o;l

(149,939,995)

.__ ~

__}f),~_!L

Jl±?.B69,9~)

64,3fi4,;ns

~Si.f,9~,2U

1

,~.£.2d9.M2t

2ul2

QR

6:+,5~3,0X9

(388,792,483) 42,540J;(('1 4,205,499 (S.36{),743 J 13,61:\120

178,610

2,208,263 (:2,S!l4,392) 52:,063,8,:9 .

(23,4Q.3,50~1

32J ,~n2A89 (6[,90(,304) (l46,739,948) 136)09,7{7 _ .62:::!.::q.,660

312,291,614

(58,643,654)

(4;320,9,:5)

• 14932?,OI5

2,894.]92 609,659

10,049,971 (\72,719,187)

l; 6,594 ,s05) (40A to,DOO)

~.71~,9631

..Q?4.§S2,6)Jl 237,n(j7,!:n

• 13-0!~;O~

__ __ 25!c~f)7J3

223,251,515 (30,90 I ,7%) 5,OO(U'tOC

.~!_6£~Ag2

:;64t96~ijl

The atlached i'IOle~ : to 33 form an integral part ofLlese cor;sokiated financial slUlement$. 6

SLIDE 9

Aamal Company Q.S.C.

CONSOUDATED STATEMENT OF CHANGES IN EQU ITY

For the year ended 3 I December 20 13

Alfribulable (Q equit;Y hulders Q

[the parent Cumulative

N OII-

Share Legal

Treasllry chollgein

Retained

conrrolfing

T%f

capilal

resen'c

shares fair value

earnings

Tolal in/ereslS

equity

QR QR

Q R

QR

QR

QR

QR QR Balance at 3! December 20

J I

4,950,000,000 267,955,805

61 4,024 ,670

5,83 1,980,475

14 1,645,505 5.973,625,980

Boou!> shares issued (Nole 27) 495,000.000 (495,000,000) Profit for the year

594,892,946 59.::1 ,892,9.::16 29,620,54) 624,5 13,489 Other comprehensive income for the year

(416)

(41 6)

109,998

109,582 Treasury shares acquired througb business combinati on

(2,075,865)

(2,075,865) (2,075,865)

Adjustmenl due to loss ofcontrol of a subsidiary (983 ,643) (983,643)

Derecognition of non­controlling interest due 1 0 liquicbtion of

a subsidiary

55,932 55,932 Transfer to legal reserve 59,489,296

(59,489,296)

Con(ribUlion from non­colllrolling interest 59.232.919 59,232.9 19 Contribution to socia l and sports activities fu nd

( 11,612,8'37)

( 15,6 12,837)

(15,61 2,837)

Non­controlling interest acq uiJed without change ofcontrol (Note 4)

(567,208)

(567,208) (39,842,792) (40,4 I 0,0Cl0) Bal:mce at 3 1 December 20 12 Bonus shares issued (Nole 27)

Profit for the year

Other comprehensive income for the yeM

Transfer to legal reserve

Cootribution from non­controlling interest Contribution to social and sports activities fund 5,44S,000,00Q 555,000,000 32 7,445,101 50,687,45 1 (2,075,865)

(4 16)

4,485 638,248,275

(55 5,000,000)

506,874,507

(50,6&7,45 1)

( 12,807, 11 7) 6,408,6 17,095 506,874,507 4,485 (12,807, 11 7 ) 189,838,462 5,4 10, 182 1,5 35 70,000 6,598,455,557 512,284,689 6,020 70,000 ( 12,807.1 122 Bal:lnce at 31 Decem ber 2013 6,000,000,000 378,132,551 (2,075,865) 4,069 526,628,2 14 6,901,688,970 195,320, 179 7,098,009,149 The a(tached notes 1 to 33 fann an integra! pan a fthese consolidated financial slatements.

7

SLIDE 10

2

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 3 I December 20 13

CORPORATE INFORMATION AND PRINCIPAL ACTlVIT IES Aamal was funned on 13 January 2001 as a private shareholding company with limited liability (W.L.L.) under the COlrunerciaJ Registration Number 23245 in the Slate of Qatar. On 12 July 2007, the private shareholders resolved to transfonn AamaJ into <) Qa!ari Shareholding Company (O.S.C.) (the "Company"). Accordi ngly, the Company was listed on Qatar Exchange on 5 December 2007. The Company's registered office is at P.O. Box 224TI, Doha, Sttlle ofQatar. The Compaoy is organised inlo a head office (Aamal) cllld branches and operates in the State of Qatar. The fo llowing table sets out the principal activities of the branches:

Brancb

Principal aellvities City Center Qatar Branch Leasing the facilities of the retail outlet complex in Ci ty Cen ter Doha. Aamal Real Estate Branch Residential and commercial real estate investment and property rentaL Aamal Readymix Branch Production and sale of readymix concrete. Ebn Sina Medical Braoch Wholesale and retail distribution of phannaceulicals aod general consumable products. Aamal Medical Branch Wholesale distribution of medical eq uipment. Aamal Trading and Distributioo Sale of tyres, lubricants, batleries .and home aplian~

s.

Branch Amnal Servi~s Branch Providing facilities management arld cleaning services. Aamal Travels Branch Operating a travel agency. Aamal fur Indus trial Projects lndusllial investments. Branch Good Life Phannacy Branch Sale of phannaceuticals, baby care products, medicine and general cOllsumable products. Foot Care Center Branch Sale of footwear, clinical activities and general commercial tradillg products. The consolidated financial statements were authorised for issue by the representatives of the B03Id of Direclors of Aamal Corupaoy Q.S.c. on 20 February 2014. BASlS OF CONSOLIDATION The consolidated fioancial statements comprise the fioancial statements of AamaJ Company Q.S.C (the "Company") and its subsidiaries and joint controlled entity (together referred to as the "Group"). Subsidiaries Subsidiaries are enlities controlled by tbe Group. The Group controls an entity when it is exposed to, or has rights 1 0, variable returns of its involvement with the entity and has the abili ty to affect those returns through its power over t!:le entity. The financial statementS of subsidiaries are induded in the consolidated finarlcial statements ITom the date

• n which control commences until the date on which control ceases. When the Group loses control over a subsidiary,

it dereognises the assets aoo liabilities of the subsidiary, and aoy related non­cootrolliog interest and other components of equity. AllY resulting gain or loss is recognised in consolidated statement of income. Any interest retained in the fonner subsidiary is measured 0.1f3ir value when control is lost 8

SLIDE 11

2

Aamal Company Q.S .c.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2013 BASIS OF CONSOLfDA TiON (continued)

Subsidiaries (continued) Set oul below are Ihe Group's principal subsidiaries at 3 1 December 2013, Unless oUlenvise slated, the subsidiaries as listed below have share capital consisting solely of ordinary shares, wh ich are held directly by the group and {be proportion of ownership intereSIS held equals 10 the votiug rights held by Group. Tbe country of incorporation Of registration is also their principal place of business:

Comp(my name

Aamal Cement Industries

• W. L.L

!MO Qat:1/" Company W.L.L. Senyar Industries Qatar Holding W.L.L

• Doho. Cables Qaw W.l.L.

EccoGulf Compaoy WLL

Advanced Pipes and Casts eomp. 'my WLL Johnson Controls

Qatar

W.L. L. Country 0

/

;lJCQr poration

Qato.r Qatar Qatar Qatar

Q 31ar

Qatar

Principal (lcfi" ity Development and mlUlagement of factories and the prodllaion or curb s

l ~

n

e,

il'llerioo;;k sla.bs :lIId cement

bricks. Construction and repair of power plant, establislunent and man3gemenl of industrial enterprises aud acting as a representative for the imcmatiOllru companies. Management of subsidiaries and associates, ovming of

p

al e n ~

businesses and subleltiug U lem and provision

• f investment

port fo lio

management for

Its

subsidiaries and Msocialt:s. UO!kr the shareholders agreement signed between the Group and the other shareholders, the Group is able 10 appoint the chai rman and two other members 10 (he Boflrd of DirectOfS (out of six members) and is able to govern the financial and operating policies of Senyar Industries Qatar Holding W.LL. Accordingly, ~ company is considered as a subsidiary oCthe Group. Mailltenance and mallllfacture of electric cables, equipmelll and lools. Doha Cables QalaJ W.LL. is 91.875% (eITectively) owned by Senyar hldush; es QaUlr Holding W.L.L., a subsidiary of tllC Group. TI"Ie Group has (he power, indirectly through SenyM [ndustJic:s Qatar Holding W.LL., 10 govern financial and operating policies of Doha Cables Qatar W.L.L. and accordingly the company was. considered :IS a subsidiary ofthe Group. OITers professional and business process outsourcing and Cll )] center services. Manufacturing of Wide cement :md &lass reinforced pipes systems for infr:ssl!"\ICture (lnd pipeline projects. The Gro up h ~ the power 1 0 govern ~lot financial and

• pera1ing policies or Adv3I1ced Pipes and Casts

Company W.L.L. by virtue of a sllarchokJers'

• agreemeot. TIlus the Company has been cotlsldcrOO as

II subsidiary of the Group.

Provision of racililies management service5 , energy

se-rvices :md building maimetlaoce and clean'{lg

services to corporate clicn1.S.

Pl"Oporlion o j

• WP!ersllip held by the

Non Group

C O n/roiling

interest

99% 1% 60% 40% 50% 50''/0 45.9%

• 54. J%

5 1% 49" /0 50% 50% 51% 49%

9

SLIDE 12

2

Aamal Company Q.S.C.

"OTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For toe year ended). J December 2013

BASIS OF CONSOUDA

nON (continued)

Suhsidiaries (wntiourd)

Cmmffyoj

f'N>pvniOil "j irn:iJ!pvrolii!n

~ __?~&iphd

~

Nor: G)1)"Ji

contfoif!>;g iMere>'!

C;·San TI?~ing W.LL

Sdi:l& lYJy1ng. renting ;me M'<¢lopil12; [e~!

tSi::t\.e.

30% invi.,,,!menl w shams, rnli.lVigemc1\t vf real {lsta'!,;

propeIti<t:l. owning ille palent and trad¢m;u't: and

tnlding in iXjUif'lfIfflt amJ vcilici';$. 1he GroClp has tJ:e pcwer tv go,em 6e ~i:nr8h.l and oj:Jrt<ll;ng

ro!icie_~

• f Cl,SM by vifcle 0: .a shlrcholdcrs'

191e~m¢n(

745% 25 1~i !nnoV?1iv.; l.ightinf wmpany Qatar TNriing of Ught 2rr.:t1!nz DiDd;; {lEU: L.!!wpj lmd

7{r}"

J!}?')

WLL

• lh,T !:$hlil1g prr<:!\wl:;

Twdiflg of

• !"'f\4; SiJpplk­s and provid'll$ prindna; and

65% 35% laniniltmJ; s<:r";ce~,

Non­coufroUing illterests Non­controrling intel'('SlS are measwed ;tj t.leir propO(hOni.le $hue Ot the ;tcquiree's identifiabk net asscl" III the

J.CqUiSlOt1 rote. Chuegt's in t:1e Group's imc:est in i\ $ubsiciwty !hat do tot rc:mltlo a loss of

~'{)I1a1)l

;;xc accountd for

as equity trnr:&lclions, Tamil-crions eUminnted on c{)!lwtidaticu

lntn>group baiances Jue transactions, ;;00 any unrealised income 1nd expenses ari$tng from intrnwgrOU? tranSaOiQlls. arc eiimm.atcd. Uf'iJeaiiH:d gaina arising from ITaUstlclions \\'ttlt equity­lK"coUl11uJ I!lVt:SlCCS are eliminatd ;1gamst the investment 10 the extent oftlle Group':; interest in the inveMee. Um"aslised lo:::ses are eiiminatd II' the same \VllY us unrvalised gains, hit only to Ille eXfeut that there is 1:0 evidence ofimpaim,¢ut

Ilt'n'.~ts

in jOint arrangements iu)d associates:

Detai!s ofeach of

ttc Group's Hutilrial Joint venlU)':?s fuj<j asoeime~ at the end of the reponing period are ;5 [OHOViS

C:mniryc>!

PltJporlion qf

Compao}, name

inf;O/'jwNiIIO!1

ew"onlup Q<d vO/ingjY!wer htld by

tiff! GrOl'p

[I Sewed;: Cable;; QntM Tnd:llg in ele(mHnech;mit:a! CGlJ)ptnefll;md plOvicmg

WLL

rei;;.,;:;;) services, El SWNed:' Cables {)ilMr WLL is

49% {JW!\oo (Wilt 55%. tblre of rrofils ! (losses) hy StHyar lrdl1.(rie~

Qal3t Ho!di:rg WLt.. e 511b8idimy

0,' ~he G:Ollp. However (kw 10 ~ fe',.iBtil shareholder> agree'w;!li, !}£ ellWY has I~')mc a jOm! vent.!\'( e/T;::dive tr.mJ l January 20!::! wllkh is mC(t511rec Il!1de, the eq'Jity n:.>U1\};l. :ri:ns $tn>d'JBI S~! \1idJ>;:

(law

Ertity lS engaged ;!l sled (b!:![iclli0!ls. Gf0:Jp mt'll£ure Ea.,,: \\'.L.C

t11¢ fl.5sodau under cquhy nlctooo,

SLIDE 13

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FlNANClAL STA TEMENTS

For the year ended 31 December 2013

3 BASIS OF PREPARATION AND SUMMARY OF SfGNlflCA1\'T ACCO UNTING POLICIES 3.1 BASIS OF PREPARATION The consolidated financial statements have been prepared in accordance with lntemational Financial Reporting Standards (IFRS), and the appLicable requirements ofQalar Commercial Companies' law No.5 of 2002. The consolidated financial statements have been presented in Qatari Riyals (QR), which is {he Company's f\loclional and presenUllion currency and have been rounded to tlle nearest Qatari Riyal. TIle consolidated financial statements are prepared lUlder the historical cost convention modified to include !he measurement a l fair value of investment

properties and available­for­sale investments,

3.2 CHANGES IN ACCO UNTING POLICI ES The [lccoWiting policies adopted are consistent wilh Ihose of the previous financial year except for the following standards effective for the annual period beginning on or :lfter 1 J:lnuary 20 13. These standards and amendments.

• ther tMn the impact of (FRS II ­ Joint Arrnnge menlS noted below, did not have aoy malenal impact to the

Group. lAS I (amendment) ­ Presenfalion of items ofother comprehensive income The amendments to IAS I require that an emity present separately the items of

<N her comprehensive income that

would be reclassified to profit or loss in the future if certain conditions are met from those that would nC ver be reclassified to profit or loss. lAS J9 ­ Employee benefits (20/1) lAS 19 (201 1) changes the definition of short­tenn and other long­tenn employee benefits to clatify the distinction between the two. lAS 28 (201 f) ­ fnvesfmem in Associates and Joint venti/res lAS 28 (2011 ) supersedes lAS 28 (2008). lAS 28 (2011) makes the foHowing amendments; Associ:ues held for sale: JFRS 5 Non­current Assets Held for Sale and Discontinued Operations applies 10 an investment, or a portion of an investment, in an associate or a joint venture that meets the criteria to be classified as held for sale. For any retained portion of the investment tlwt has not beell classified as beld for sale, the entity applies the equity method until disposal of the portion held for sa

l ~.

After disposal, any retained interest is accounted for using the equity method if the retained interest continues to be an associate or a joint venture, and

0 0 cessation of significant influence or jo int conltOl, even ifan investment in an associate becomes an investment

in a joint venture or vice versa, Ihe entity does not fe­measure the retaincd interest. Amendments f.t) fFRS 7on o/fseftingjil1ancial assels and jinancialliabilities (2011) Disclosures ­ Offsetting Financial Assets and Financial Liabilities (amendmems to 'FRS 1) introduces disclosures "bout Ihe impact of oetting arrangements on an entity's financial position. Based on the new disclosure requirements the Group has to provide inforroation about what amounts have been offset in the consolidated statement of fim:mcial position and the nature and extent of rights of set o ff under master netting aIT:lngements or similar a1T:lngernents. fFRS 10 ­ Consolidate!1 financial SIOlemenlS and lAS 17 Separate Fillancial Sfalemen/S (2011) [FRS 10 i, ntroduces a single control model to determine whether an investee should be consolidated. {FRS \0 replaces the parts of previQ\lSly existing lAS 27 Consolidated and Separate Financial Statements that dealt with consolidated financial statements and SIC­12 Consolidation ­ Special Purpose Entities. This new contro l model focuses on whether the Group has power over an investee, exposure or righlS to variable rerums from its involvement with the inveSlee :lnd abili ty to use its power to affect those returns, The Group has amended its accounting policy on consolidation in line with requirements of TFRS 10 and has re­assessed its consolidation conclusion. [FRS 12 ­ Disclosures ofimerests ill other entities IFRS 12 brings together into a single Sfandatd all the disclosure requirements about an entity's interests in subsidiaries, joint arrangements, associates and unconsolidated structured entities, It requires the disclosure of infonnation about the nature, risks and financial effects of these interests.

II

SLIDE 14

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FTNANClAL STATEMENTS

For the year ended 3 1 December 201 3

3 BASIS OF PREPARATION AND SUMMARY Of SIGNIFICANT ACCOUNTrNC POLICIES (continued) 3.2 CHANGES IN ACCOUNTING POLlc ms (coDtinued) IFRS IJ . Fair ~ ' al

ue

measuremetll TFRS 13 provides a single source of guidance on how fair value is measured, and replaces the faif value measurement guidance thai is currently d ispersed thIotlghool [FRS, It unifies the definition of fair va lue as the price that would be received 10 sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement dale. It replaces and expands the disclosure re<juiremenlS about fair value measurements in other IFRSs, including TFRS 7. Improvements (0 IFRSs (20 / /) Improvements to IFRS issued in 20 11 contained numerous amendments to IFRS that the IASB considers non- urgent but necessary. ' Improvements to lFRS' comprise amendments that result il) accounting changes to presentation, recognition or measurement purposes, as well as tennioology or editorial amendments related to a varie!), of individuallFRS standards. During the period, the Group has adopted the following new standard which became effecti ve for the annual periods beginning on I January 201 3, which had a materi81 impact to ule Group. IFRS II Joint AlTwlgements As a result of adopting "IFRS II", the GrO

\lp has changed its <lccoUJ)ting policy for interests in jo int

• arrangemeots. Uuder rFRS 11 , the Group classifies its interest in joint arr.Jngements as eimer j oint operations or

joint ventures depending on the Group's rights to the assets and obligations for the liabilities ofthe arrangements. When maldng this assessmenl, the group considers the strucltire of the arrangements, the legal fonn of any separate vehicles, the contractual tenns of the arrangements and other facts and arrangements. Previously, the structure of tbe arrangement was the sole focus of classification. The Group has re­evaluated its involve men t in ils o nly joint arrangement, El Sewedy Cables Qatar W.L.L. <lnd has recla ssified the investment from jointly controlled entity to joint venture. Also the Group has discontinued, with rerrospective effect, the use o f the proportioni lte consol idation method and adopted the equity method to account for joint venture in accordance mth IFRS I I. Summary o

!quulllitative impuct

The following tables summarises the material impacts rcsulting from the above change in accounting policies on the Group's financ ial position, profit or loss and cash flows.

Effect of chnnge in

31 December2012 accounting policy

Cunem assets

(278,880,441 ) Non­current assets

12,95 1,346 Total assds (265,929,095)

Current liabilities

(265,072,694)

Non·cWTent liabilities

(856,401) Total lin bill

ties (265,929,095)

For the year ended 31 December 2012

Profit for the year Net chf lllge in cash and cash equivalents dlUing the year (996.96J)

12

SLIDE 15

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 3 I December 2013

3 BASIS OF PREPARATION AND SUMMARY OF SlGNlf[CANT ACCOUNTING POLICIES (continued) 3.3 lASB STANDARDS AND lNTERPRETATIONS ISSUED BUT NOT ADOPTED The following lASB standards/amendments h:Jve been issued but are not yet mandatory, and have 1l0( been e:trly

adopted by the Group: Standard! Illterpretotion COn/em EffeClive dale TfRS9 Financial InstrumentS (new standard) I Januruy20 17

IAS 32

Financial Instruments: O ffsetting (amendment)

I January 20 14 JAS 36

Financiallnslnnnents: Disclosure ­ non­financial asse ts (amendment)

I January 2014

The Group is considering the implications of the above standards, and the till1.ing (If adoption by the Group.

3.4 SUMMARY OF SIGNIFICAJ.'\'T ACCOUNTING POLICIES

Business combinnriO

llS

The Group accounts for business combinations using the acquisition method wben connol is Imasferroo to the

• Group. The consideration ITansrerred ;n the acquisition is generally measured at fair value, as are the identifiable

net assets acquired. Any goodwill that arises is tested annua lly for impairmeot. AllYgain on a bargain purchase is recognised in pro fit or loss immediately. Transaction COStS arc expensed as incurred, except if rehated to the issue

• f debt or equity securities.

The consideration transferred does nOt include amounts related to the settlement of pre­existing relationships. Such amounts are recognised in profit or loss. Any contingent consideration payable is roeasured at fair value at the acquisition date. If the contingent consdicrntion is classified as equity, then it is oote n::measured and settlement is accounted for within equity. Otherwise, subsequent changes in the fa ir value of the contingent consderafion are recognised iu profit or loss. Cash a nd eash equivalen ts For the purpose of the consolidaled statement or cash flows, cash and cash equivalents consist of cash and bank balaoces ruld short teJTIl bank deposits with an original marurily of three months or less, net of outstanding bank

• verdrafts.

Accounts receivable Accounts receivable are stated at originill invoice amount less an allowance for any uncollectible amounts. An estimate for doubtt'i.t\ debts is made when collection of the flilt amount is no longer probable. Bad debts are wntlen off when (here is no possibility of recovery. Inventories Inventories are stated at the lower of cost and net realisable value. Costs are those expenses incurred in bringing each product to its present location and condition. Goods ror resale/work in progress ­ Cost of direct materials aJld labour plus attributable overheads based

• n a oormallevel ofac1ivity.

Raw material and spare pan s PlIlchase cost on a weighted average basis. Net realisable value is based on estimated selling price less any further costs expocted to be incurred to completion and disposal. 13

SLIDE 16

Aama! Company Q.S.c.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For tbe year ended 31 December 2013 3 BASIS OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTfNC POLI CIES

(contin ued) 3.4 SUMMARY OF SIGNIFICANT ACCO UNTLNG POLICIES (continued) Interests in equity­aecoupled inveslecs

The Groups, interest in equity­accounted investees comprise interest in associates and joint venture. Associates are lhose entities in which the Group has significant influence, but not control or joint control. over the

financial and operating. policies. A joint vennu­c is an arrangement in which the Group has joint ool1lrol, whereby the Group has rights to the net assets of the arrangement, rather thall rights to its assets and obugations for its liabilities. InlereSIS in associates and the joint venture are accoliDted for using the equity method. They are recognised initially tit cost, which includes transaction costs. Subsequent to initial recognition, the consolidated financial statements ioclude the Group's sh:rre of the profit or loss and other comprehensive income of equity­accounted investees, until

the dalc on which significant in Lluence or joint control ceases. The reponing d

~l es

• f the equity­accounted investees and the Group are identical and the equity­accounted

investees' accoWlting policies confonn to those used by the Group for like tmnsactions afld events in similar circumstances. Investmeflt properties

umd aod buildings are considered as investment properties only when they are being held to earn ren tals or for

capital appreciation or for both. Investment properties are measured initially at cost, including traosaction costs and borrowing costs that are directty attributable to construc tion of the 8sseL The carrying alRount includes the cost of replacing part of an existing investment property at the time that cost is incurred jf toe recognition criteria are mel; and excludes the costs of day­to­day servicing of an investment property. S

u b ~q ue nt

to inilial recognition. investment properties are slated at fair value, which reOects market conditions at the reporting date. Gains or losses arising from changes in the fair values of investment properties are included in the consolidated statement of income in the

ye<lr in which they arise.

Investment properties are derecognised when either they have been disposed off or when the investment property is pennanently withdrawn 1T0m use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of aD investment property are recognised in the consolidated statement of income in the year of reti.remeOl or disposal. Property under construc tion is dealt with u.nder lAS 40 and rttorded at cost less accumulated impairment losses until either its fair value becomes relia bly detenninable or cons(TUction is completed (whichever is earl ier). At that time, it is reclassified as investment property and a fair value adjustment is recognised in the consolidated statemenlof income. Transfers are made to or from in vestment property onl y when there is a change in use. For a transfer from investmen! propeIT)' to ovmer occupied proreIT)', the deemed cost for subsequent accounting is the fair value at the date of change in use. If owner occupied property ~o

m

es

an investment property, the difference between the canying value aoo the fair value at the date oflransfer is rttognised as a revaluation reserve in the equity and is released to the consolidated statement of income llpon disposal of such propcny.

14

SLIDE 17

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FrNANCIAL STATEMENTS

For the year eDded 31 December 2013

3 BASIS OF' PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

.304

SUMMARY Of SIGNIFICANT ACCOUNTING POLICIES (continued) Property, plant and equipment Property, plant and equipment is stated at cost including borrowing costs that are eligible for capitalisation and excluding the costs of day­to­day servicing, less accumulated depreciation and any imp~i

n ne

m

in value. Depreciation is provided on a straight.line basis on all propelT)', planl and equi pment. The rales of depreciatioo are based upon the following eSI;m:ne<! useful lives: Buildings

20 years Leasehold improvements

2­8 years Truck mixers and motor vehicles 4­1 5 years Plant and ITIJchioery 8-2 5 years Furniture, fixtures and office equipment 3­5 years Computers and related software

3­5 years

Capital work in progress Not depreciated The carrying amounts are reviewed for impainnellt when events or changes in circumstances indicate that the carrying value may not be recoverable. If any such indication exists and where the carrying values exceed tbe estimated recoverable amouot, the assets are written down to their recoverable amount, being the higher of their fair value less costs to sen and their value in use. Expendirure iocurred lO replace a component of an item of property, plaot and equipment that is accotmted for separately is capitalised and the carrying amount of the component that is replaced is written off. Other subsequent expenditure is capitalised only when it increases furure economic benefits of the related item of property, plant and

• equiproent. All other expendirure is recognised in the consolidated statement ofincome as the expense is Incurred.

An item of property, plaot and equipment is dereeognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognilloo of the asset is iocluded in the consolidated stalemeot o f income io the year the asset is derecognised. The asset's residual values, useful lives and method ofdepreciation are reviewed, and adjusted if appropriate, at each r,nancial year end. Borrowing costs Borrowing costs directly attributable to the acquisition, constmction or production of an asset that necessarily takes substal.ltjal period of time 1 0 get ready for its intended use or sale are capilalised as pan of the cost of lhe respective

• assets. All other borrowing costs are expensed in the year they incur. BOlTOwiog COSts consist of the interest and
• ther costs that the Group incurs in coom:ction with the borrowing of fund s.

Accounts paytlble and accruBls Liabilities are recognised for amounts to be paid in the fuMe for goods or services received, whether billed by the supplier or not Interest bearing loans Bnd borrowings Interest bearing loaos and borrowings are recognised initia!Jy at fair value of the amounts borrowed, less directly attributable transaction costs. Subsequent to initial recognition, interest bearing loons and borrowings are measured at amortised COSt using the eff ecti ve interest method, with any differences between the cost and tinal settlement values being recognized in the consolidated statement of income over the peliod of borrowings. Instalments due within one year aI amortised cost are shown as a ctuTentli.abiliry. Gains or losses are recogTlised in the consolidated sialement of income when (he liabililies are derecognised. Interest relating (0 imerest bearing loans and borrowings is expensed in the year in which it is incWTed e,'(cept those qualify for capitalisation. 15

SLIDE 18

Aamal Company Q.S.C.

NOTES TO THE CONSOLIDATED FfNANClAL STATEMENTS

For tbe year eoded 31 ,December 201 3 J BASIS OF PR£PARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(continued)

3.4 SUMMARY Of)SIGNIFICAt'l/T ACCOUNTING POLICI ES (continued)

TC l\aot deposits Tenant deposit liabilities are initially recognised at fair value and subsequently measured at amortised cost where material, Any di fference, between the initial fair v:llue and the oominal amount is ["eluded as a component of rental income and rocognised on a straight­line basis over the lease term. Derecognition or fio:l.ocial nsstls and liabilities a) Financial assets A finanCIal asset (or, w

~r

e

apphcabJe a part of a financial asset or part of a group of SImilar financIal assets) IS

derecogmsed where. J

• The nghts to receIve [5h flows from the asset have expIred,
• The Group has transf. rred Its rights to receive cash flows from the ass;!{ or has assumed an obhg811On to pay the

re<;elved cash flows I full Wlthout mfltenal delay to a third party under a 'pass­through' arrangement. and elther (3) the Group has Ira sferred substantially aI/the nsKs and rewards of the asset, or (b) Ihe Group has neuher transferred nor relain substantially ai' the nsks and rewards of the asset, but has tnlnsferred control of the asset When the Group has tTa

~f

ened

its rights 1 0 receive cash flows from an asset or has entered into a pass­waugh arrangement, and has nejlher tr.msferred nor retained substantially all of the risks and rewards of the asset nor trnnsferred control of the asset, the asset is recogoised to the extent of the Group's cOlilinuing involvement in Ihe

"'....

In that case, the Group at 0 recognises an associmed liability. The mnsferred asset and ihe associaled liabi lity are measured 00 a basis thai flects Ihe rights ;lnd obligations that the Group has retained. Continuing involvement that takes the form of a guara tee over the transferred asset is measured at the lower of the original canying amount of Ihe asset and fbe maxim

amoun! of consideration that the Groop could be required to repay. b) Financialliabiliti A financial liability is defogniSed when the obligation under the liability is discharged or cancelled or expires. Where an existing fio8 1lci I liability is replaced by another from the same lender on substantiall y different lenns,

• r the terms of an existin liability are substantially modified, such an exchange or modification is treated as a

derecognition of the or

ig ~.

al liability and the recog1Jitioil of a new liability, and the dirference io the respective carrying amounts is reco ised in the consolidated Slatement of income. Impalr meot ood uncollec ibility of financial assets An assessment is made al each repon ing date to determine whether there is objective evidence that a specific financial asset may be impaired. If such evidence exists, allY impainneOl loss is recogoised in the cons.olidated statement ofincome. ImT "t is detemtined as follows: (a)

For assets earned at fair value, impainnellt is tbe difference between cost and fair va lue;

(b) For asse& carried at COSt, impairment is the diff erence between cost and lIle present value of future cash flo1S discounted at lhe current market rate of rdurn for a similar financial asset.

(0) For asseq; carried al amortised COSt, impainneot is the difference between canying arnOW'll and lhe present Value of

future cash flO M discowlled at the original effective iDlerest rate. Provisions

Provisions are rewgnised hen the Group has an obligation (legal or C Onslnlctive) arising from a past event, and the costs to settle the obligalio are both probable and able to be reliably measured. 16

SLIDE 19

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 2013

3 BAses OF PREPARATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (colltinued) 3.4 SUMMARY OF' SIGNIFICANT ACCOUNTING POLICIES (continued) Employees' eod of service benefits The Group provides end of service benefits to all employees in accordance wi th employment contracts and Qatar Labour Law. The entitlement to these benefits is based upon the employees ' final salary aocl length of service, subject to the completion of a minimum service period. The expected costs of these benefits are accrued over the period ofemployment Revenue Revenue is recognised to the extent thal it is probable that the economic benefits will flow to the Group and the revenue call be reliably measured. Revenue is measured al the fair value of the consideration received excluding discoWlIS, rebates and duty. The following specific recognition criteria must also be met before revenue is recognised: Sale ofgoods Sales are recognised whcn significant risks and rewards of ownership of the goods have passed to the boyer and the amount of revenue cao be me3sured rcli3bly. Rental income Rental incorne from investment properties is accoWlted for on a time proportion basis over the period of tenancy. Incentives for leases to enter into lease agreements are spread evenly over the lease teon, even if the payments are

not made 0 0 such basis. Income arising !Tom expenses recharged to tenants is recognised in the year in which the

expenses can be contractually recei ved. Service charges aud other such receipts are includcd gross of related cosls in revenues as the Group acts as principal io this regard. Premiwns received to terminate leases arc recognised in the consolidated statement of income when they arise. Service income Service income is recognised when the service is rendered and the outCQrne of the transactions can be estimated reliably.

COli/mission

Commission is accounted for on an accrual basis, when the right 10 receive the income is established. become on t r a~'e

l agencies

[ncome on travel agencies is accounted for in the year in which the airline tickets are sold. II/Ieresr income Joterest income is recognised as the interest accrues using the effective interest C:lle method. Foreign currencies Transactions in foreign currencies ate recorded al tbe rale ruling at the date of the transaction. Monetary assets and liabilities dcoomioated io foreign currencies ace retranslated ill the raLe of exchange ruling at the reponing

• date. All differences are recognised in the Statement ofinconlC.

Use of estimates The preparation of (he Group's consolidated financial statemenls in CQnfonnity with Intem:ltional Financial Reponing Standards ([fRS) requires management 10 rnake estimates and assumptions that affect the reponed amounts of assets and liabilities and disclosure of contingent asscts and liabilities at the rcporting date and the reported amoUlils of revenues and expenses during Ihe reponing period. Although these estimates are based on management's best knowtedge of current events nnd actions, acnm! results may ultimately differ from those

• estimates. (Significant asswnptions, nccounting judgments and estimates used in preparing these c.oosolidated

financial statemenlS are disclosed in Note 31). The estimates and underlying assumptions are reviewed regularly. Revisions to accounting estim::lIes are recognised in (he period in which the estimate is revised if the revision affects only that period or in th~ period of the revision and future periods if the revision affects both current and future periods. 17

SLIDE 20

Aamal Company Q.S.C.

NOTES TO THE CONSOLlDA TED FINANCIAL STATEMENTS

For tbe year cnded 31 December 2013 3 BASI S OF PREPARATION AND SUMMARY OF SrGNIFICANT ACCOUNTING POLICIES

(continued) 3.4 SUMMARY or SIGNIFICANT ACCOUNTING POLI CIES (continued) Fair va lues A number of Group's accounting policies and disclosures require tJ1C measurement of fair values, for both financial and non­financial assets and liabilities. The Group has an established control framework with respect to the measuremeot of fair values. When measuring the fair value of an asset or a liabilily, the Group uses market

• bservable data for (be valuatiOD. Fair values are categorised into different levels in a fair value hierarchy ba!;Cd
• n the inputs used in the valuation lechniques as follows.

i) Level I ­ Unadj.osted quoted prices io active markets for identical assets and liabilities, ji) Level 2 ­ Otheqobservable inputs not included within level 1 of the fair value hierarchy

iii) Level 3 ­ Unobtervable inputs (including entity's own data, which are adjusted if necessary to retlect the

assumptions market participnllts would use in the circumstances.)

,

The Group recognises tralnSfers between levels of the fair value hierarchy at the end ofthe reporting period during

which the change has ocdWTed_

Treasury shares When share capit. '\l recognized in equity is repUIchased (by the Company or any of its subsidiaries), the amount of the consideration paid, which includes direaly altributable COSIS, is recognized lIS a deduction from equity. Wheo treasury shares are sold or reissued subsequently, the amount received is recognized as no increase in equity, and the resulting surplus or deficit on the transaction is presented io share premium.

18

SLIDE 21

4

Aamal Company i

Q.Sc.

NOTES TO THE ONSOLlDATED FINANCIAL STATEMENTS

For the year ended 31 ecember 201 3

BUSINESS C

O~BlNA

nON

Acquisition o f Culf RO!'ks Company \V.L.L. On 1 January 2012, the roup acquired 51 % oflhe voting shares ofGulf Rocks Company W.L.L. (Gulf Rocks), a limited Iiabiliry campan incorporated in Qatar and registered UJ:Kier conunercial registration number 2249{). The acquisition was made thT ugh Ci­San Trading W.L.L., a subsidiary which is 50% owned by Aamal Group.

I

The fai r val ue of lbe ide,ltifiable assets and liabilities of Gulf Rocks Company W.L.L based on purchase price allocation exercise cond*lcd by tbe management, as at the date ofacquisition W;J

S as follows:

Fair value

recognized on acquisition QR

Assets

I

Cash and bank balances 14.005,495

ACC QUOiS

receivable and wePayments

I' ,749,383

Amouots due from related p:lrties I .

I

• veotones

48,311 , 190 5,124,270 Available for sale in

ves tm ~ n

lS

1,985,245 Plant and equipment 676,9 17 81,852,500 Liabilit ies Accounts payable aJld accll'1als 4,724,446 Amounts due to related parties 385,070 Employees' end of serviccibenefits (Note 15) 349,272

5,458,788 Total identifiable net a5sellf

Purchase consideration tra*sferred Non­controlling intereSt az­ising on business combination

Bargain purcha5c gain r c~

u'

ti

ng

from the ::tcquisilion Allalysis ojcash flows OIl acquisition; Net cash acquire1:1 'Nith the : subsidiary

14,005,495

Cash paid (30,600,000) (16,594,505)

On I September 20 12 the Company acquired the balance 49% nfthe equiry of Gulf Rocks. Accordingly the Group has 74 .5% effective holdin4 in Gulf Rocks as at the reporting dale. The excess nfthe purchase consideration over Ihe fair value o f net assets of GuJf Rocks acquired from the nnn­controlHng interest has been recorded directly in the retained earnings of tbe Gr6up as at 31 December 201 2. QR Purchase consideration 40.4 10,000 Less: fuir value ofoet aset

~ acquiroo from the non­controlling Interest holder

(39,842,792) EXce5s of purchllse considf ration over the fair value of net assets a(q uired 567,208 19

SLIDE 22

5

Aamal Company ! Q.S.C.

NOTES TO THE (WNSOLlDATED FfNANClAL STATEMENTS

For the year eoded 3 ) December 2013

CASH AND CASH EQUIVALENTS For the pmvose ofconsolidated statement of cash flows, cash and cash equivalents comprise the following balances:

lon

2012

QR QR

Cash and bank accounts 330,333,904 282,272,895 Short lenn bank deposits 105,802,852 85,608,396 Cash and bank balances 436,136,756 367,881 ,291 Bank overdrafts (6,836,280) (2,885,090) Cash and cash equivalents 429,300,476 364,9961 20 1 The short tenn bank deposits are made for varying periods between one day aod three months, depeoding on Ibe immedifltc cash requirements of the Group, and earn interest at the respective short term deposit rates. 6 ACCOUNTS RECEfVABLE AND PREPAYMENTS 2013

2012

QR QR Trade aCColUlts receivable 411 ,011 ,567 345,260,657 Advances \0 suppliers and prepayments 50,787,921 62,938,9J 5 Retention receivables 36,217,081 56,943,030 Other receivables 12.073,270 17, 139,173 5tO,089,839 4 82 ,28 1,775 As at 31 December 2013, trade accountS receivoble amoWlting to QR 26,90 1,412 (201 2: OR 24,984,025) were

• impaired. Movements in the allowance for impairment of

trade aCColmts receivable were as follows: 2013

20/2 QR QR

At 1 January 24,984,025 1' ,877,085 Charge for [he year (Note 21) 2,294,590 13,613, 120 Amounts wriuen off (19,949) (117.368) Unused amotmts reversed (357,254) (388,812) At 3 t December 26,901,412 24,984,025

20

SLIDE 23

6 1

l\amal Company.Q.S.C

NOTES TO THE CONSOLIDATED FINANCIAL STATEME"<,S

For the year ended 3 J December 2013 ACCotNTS RECEIVABL£ AND PREPAYM£NTS (contillued)

As at -1 I Dtcem:x:t, the ageir.g of unimpaired {(<lde accounb i'<:c"ivabk was as follows:

P(HI duo

nor

Up to 30

31-60 61·90 Yi-jSj > flO

Tota{

impoir<-fl days days days

day'

doys

QR QR QR QR QR QR QR

1{l1:3 411,OJl,$67 25l,981,960

32,312,165 2!,140,966

19,351,fi43 16.f)76,888 60,148,545 2012 345,260,657 169,515,9B6 49,3<)8,566 23,56$,954 19,494,369 16,908,414 66.374,363.

1Ji;rtpai~ed

receivable;;. are expected. no th,' bil:5tS of past experienn), 10 be fully fcCi)\'ev.b\c. H is not the pn>ctlce ofth¢

Group to oblum collaleral over recejvablc.'I_

AMOL'NTS DUE FROyl REL.­'\TEO PARTIES

Name AI ~aisnl Holding Company \V_LL E! Seweo'{ Cabte,s Qat:n W.L L Cnild \­ftt,,!.:; Cvm;lllny Al hz! Ret'll E$v;t;;: !rWesnni:m Company W"L~ AllaZi Real Estale BrAnch EI Sewedy Electric Egypt W,LL

Muin;cr,DJ1Ce Mwag.,mvont Group Qat3r W LL Good !.;fe Cheffil;;t ­ The Pcarl BuderPh:tr:nacy Al Faisallnlemadonal Tnl(i;;: and Investment Company W,LL

AI­;\rabia Land Trnr~'PQltit1g

Company \\rLL ro! Sewedy CabLes ­ Kuwuit G¢ttco hlttrnJ!!mJilI

• Frijns. StHy.:tural Steel Middle East W.Ll

Win'er Wunder!and Company W,LL Al Ft!O!H1H for Investment & llllemti/!Ol1a! Trading COntpAny WJ_L Q;)lar Bahrain lmerOlnionai C'nero3 W,LL Gulf EngJisb S<:l­!Qo] Al Rayyao Tourism !!lve$lrnent Company W LL

Other relater:! purties 2013

2012

QR QR 154,12­1,064

ll9}41,Y70

34,644,615

~l:i,968,58l

[(',;{)0,405 1,4­45,01.2 5,1 591:97 9,538,116 1,551.41.13 4.014,727 2368,24$ 1,867,526 LSOfd22 8(1,012 1,043,5:r 311,650 746,395 15,023 204,450 459,829 2i,YHi 244,940 186,750 152,170 143,440 33,500

77,68(1

6.259

14,59<)

7,589,62­1

__

2:~61,g~_ 1~,95Ji

• 2141'09,950

171,525,363

­­_.._

..-

SLIDE 24

7

8

9

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FfNANClAL STATEMENTS

For the year ended 31 December 2013

At '\10(JNTS DUE FROM RELATED PA RTIES (continued)

NO les:

(i) Transactions witll related parties are eam ed out through open account and Directors do not consider any receivables to be past due or impaired. (ii) Related party transactions ore disclosed ill Note 26. INVENTORIES Goods for rew le Raw materials and spare pans Work in pTOgresS

Goods in transit

Less: Provision fO I obsolete and slow moving invenlories

1013 QR 165,499,699 38,388,307

19,944,678 96,71 8,553 320,551,237 (3,851,692) 31 6,699,545 Movements in the provision for obsolete and slow moving inventories were as f o

l

• v.~:

At I January Cha.rge for the year (Note 19) Reversals Amounts written off

At 31 December EQUITY-ACCOUNTED INVESTEES TIle Group has the followiog invesllnenfs in equity-accounted investees. Interests in joint venrure Interests in associates At 31 December Group's snare of profits from the equity-ncco unted iovcstees arc AS follows: Profit share from investment iojotnt venture Profit share from investment in associates

20/2 QR

232,597,650 36,608,394

30,622,960

105,21 9,695 405.048,699 Q ,145,826)

40 I,902,873 20/3 QR

3,145,826 1,380,617 (535,695) (1,139,056) 3,85 1,692 2012 QR 2,795,992 2,208,263 (137,995) ( 1,720,434) 3, 145.826 2013 QR 2012 QR 129,462,184 3,644,723 124,124,803 2,545,188 133.106,907 126,669,99 1 17,330,368 22,869,454 1,169,533 534,050 18,499,901 23,403,504

22

SLIDE 25

10

Aama! Company Q.S.C

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 201 3

9 EQUITY-ACCOUNTED INVESTEES (continued) Counlry of incorportllion Relationship

Proportion ofownership and

l'otilfg power held by the Group

20/3 2012

EI S

~ w

ed y

Cables Qatar W. L.L Frij ns Structural Steel Middle East W.L.L. Al F:tfazdaq Company W.L.L.

Qa t~

Qatar Qatar loint venture Associate Associate 55% 20% 55% 20% 35% Note: With effect from 1 January 20 13, the mlnagemeot of the Group has reclassified the investment in Al Farazdaq Company W. L-L. from investment in associate to investment in subsidiary. This is based on the transfer of share holding by the other shareholder, whereby the conlroi o f AI FOlrazdaq Company W LL. bas been assigned 10 tbe Company. INVESTM ENT PROPERTIES a) Reconciliation of carrying amounl

2013 20}2 QR QR

AI I January 6,113,347,018 5,55 1,835,348 Additions 9,568,047 172,719,1 87 Transferred from property, plant and equipment (Note II ) 34,519,828 Net gain iTo m faif value adjllstment 245,051,107

388,792,483

At 31 December 6,402,486,000 6, 113,347,01 8 b) Measurement of fair value The fair values of the Group's inveS hnent properties as at 31 December 201 3 and 3 1 December 2012 have been arrived al on the basis of valuations carried Ollt on the respective dates by professionally qualified, independent valuers not related to the Group. The independent valuers have appropriate qU:lli

ficatioos and (eceJ11 experience in

the valuation of properties in fhe relevant locations. The fair value W<lS determined based on market comparable approach that reflocls recent transaction prices for simil<1r properties, and discounted cash flow and income approach techniques. Details of the Group 's iovestment properties and infonnation about the fair vnlue hierarchy as at ) I December 20 I J are as follows: II/vestment propenies Level 3fair vallie Al I Janu ary 6, [ 13,347,018 Additions and trans fers from property, plant and equipment 44,087,875 Gain included iu prom and loss Net gain from fair value <1djuslmem 245,051 ,107 AI J I December The Group recognizes transfers between levels of fair value hierarchy as o f the end of the reponing period during whicb the transfer has occurred. There were no transfers between the fair va lue hierarchy during the year.

23

SLIDE 26

10

Aamal Company Q.S.c.

NOTES TO THE ONSOLlDA TED FINANCIAL STATEMENTS

For the year ended 3 I ecember 201 3

LNVESTM ENT ROPERTIES (contin ued) b)

Measurement 0 (air value (conti nued) Va\u:.tion technique an significant unobservable in puts The valuer has applied t e income capitalization, discounted cash flow and comparab le methods to detennine the market value of the lnve tment propen ies. Significant unobservable inputs used included expected market rental growth rates (an average 4.25%), occupancy rates (approximately 90% to 95%), and risk adjusted discount rates (approximately 5% to 7 0). M y significant change in these inputs can impact lhe fair valuation of investment propcnies.

24

SLIDE 27

Aamal Company Q.S.c. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For che year ended 31 December 2013

11

PROPERTY, PLA

i~

T

AND EQUIPMENT

FumilUre,

Truck mixers fIXtures and Complllers Leasehold and ma/or Plum (/f/d

• ffice

and rela/ed eapi/o/work Bui/dings improvements vehicles machinery eqllipmcni sofMore

in prog,·css Total

QR QR QR QR QR QR

QJl QR

At I January 2013 137,870,126

37,1 88, 132

95.958,13 1 262,536,261 19,580,954 14,864 ,385 56,1 32,447 624,1 30,436 Additions

948,)65

2,618, 100 5,367,399 859,061 1,11 5,268 137,147,581 148,055,774 Relating to d isposals/write-off

(1,042,642) (4,390,496)

(771,57L)

(589,150)

( 184,075)

(6,977,934) Transfer from capilal work in progress

1,505 ,310 164 ,336 3,601,776

( 150,000)

1,182,741

(6,304. 163) Transrer to investment properlies (Note (0) (34,5 19,828) (34,5 1 9,828) At J I Dttember 201 J 139,375,436

J7, 2 58~

~

,1

85,73 5

270,733,865 19,700,865 16,978,3 19

152,456,037

_ 73 0,68~

, 48

Depreciation:

AI I January 2013

16,133,915 J6,902 ,529 49,087,707 68,783 ,065

11 ,980,009

tl,71 5,95 3 174,603, 178

Charge for the year

7,059.805 3,237,150 5,390,767 12,249,797 2,849,162 1,768,823 42,555,504 Relating 10 disposalsJ..vri te-off (664,709) (4 ,3 17,16 1) (724,322) (552,939) ( 18 1,993) (6,441 ,124) At 31 December 201 3 23,193 ,720 19.474 ,9 70 50,161 ,313 90,303,540 14,276,232

13,302,783

2 10,7 17,558 Net carrying amounts: At 31 December 2013 116,181J16 _17,783,221 44,024,422 180.415,325 5.424,633 3,675,536 _ _ l?2,456,O37

J9,970~ 890

Notes: (i)

Depreciation charge for the year amounting 10 QR 33,164,382 (201 1: QR 33,030,91 6) is included in tbe direct costs and an amount ofQR 60,055 (20 12: QR 36,939)

has been capiulised under capital work in progress,

(ii) The capital work in progress includes capitalised borrowing costs amounting to QR 125,645 (20 12: QR 15,358). (iii) The buildings are constructed on a plot ofland taken on a loog term operating lease. 25

SLIDE 28

Aamal Company Q.S .c. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 201 3

II

PRO.PERTY, PLANT AND EQUIPM ENT (continued)

C05

I ~

At 1 January 2012 Additions Acquired through business combinations (Note 4) Relating to d isposals/write-off Transfer from capital work in progress Transfers Buildings

QR

137,434,400 435,726 Leasehold improvemellls QR 38.137,377 446,J 04 144, 103 ( 1,539,452) Truck mL'Cers

and molO" velricles QR

83,427,661 11,464,679 1,697,609 (631,824) Plant and machinery

QR

249,335,437

9,726,4 85

3,5 14, 132 (99,498)

59,705

Furniture, fir/ures and

• ffice

equipmem QR

22,845,309

667,586 192,042 (3,696,457) 98,000 (525,526) Computers and related software QR 15,8 19,519 87 1,4 14 141,837 (2,66 1,733) 908,078 (2 l4,730) Capitol work in progress

QR

12,104,889 45,1 53,265 ( 1,065,783) (59,924) Total (JR 559,104,598 68,765,259 5,689,723 (8,62 8,964) (800,180) AI 31 Dttember 2012 137,870,) 26 37,188,1 32 95,958,13 1 262,536,261 19,580,954 14,864,385 56,132,447 624 ,130,436 Depreciation: AI! Jaouary2012 Charge for the year Acquired wough business combinations (Note 4) Relating to disposals/write-off Transfers 9,144,666 6,989,249 )4,3 16,620 3,410,618 144,103 (96' ,812) 42,558,404 5,48 1,613 1,671,942 (624.252) 44,555,290 2 1,398,849 2,890,797 (6 1,87 1) 12,392,584 3, 182,899 169,005 (3,558,466) (206,013 ) 12,235,266 2,077,633 136,959 (2,627,283) (J 06,62?) 135,202,830 42,540,861 5,012,806 (7,840,684) (312,635) At 3 L December 201 2 16,133,9J5 16,902,529 49,087,701 68,783,065

11 ,980,009

11,715.953 174,603, 178 Nel canying amoWlts: At 31 December 201 2 12 1,73 6,211 20,285,603 46,870,424 193,753 ,196 7,600,945 3,148,432 56,132,447 449,527,258

26

SLIDE 29

12 13

Aamal Company Q.S.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 31 December 20 13

ACCOUNTS PA YABLE AND ACCRUALS Trade accouots payable Advances from customers and tenants Accmals Social and sports activities levy Other payables

AJ\'IOUNTS DUE TO RELATED PARTIES

Name Arab Compaey for Fiber Products

EI Sewedy EIC(:lric Ho lding Egypiasl Egypt Egyptlech Egypt

United Industries Company WLL. Johnson Controls Air conditioning aod Refrigeration Qatar W.L.L. £1 Sewedy Cables Egypt Johnson Controls Air conditioning and Refrigeration rNC Dubai United Wire Company W.L.L Gelteo Company W. L.L. - Gelteo Refrigeration and Airconditioo ing C&C Lightway, !.nc. AI Shaab Group of Companies Other related pruties

NO M: Related party transactiol)s are disclosed in Note 26.

2013 QR 320,017,657 30,486,837 26,924,669 41 ,761 ,843 25,855,567 445.046,573 2013 QR 18,517,474 4,902,528 6,531,231 6,404,578 3,215,821 2,825,884 757,825 3,467,288 263,715 1,313,247 48,199,591

2011

QR

267,162,68 1

27,410,234

22,257.5 76 28.954,726 33,)33,852

379,119,069 2012 QR 18,380,528 9,145,882 5,4 13,849 1, 11 6, 135 5,374,039 3,529,1% 2,020,359 1,693,323 1,064,744 670, 179

11 0,873

1,2 18,650 49,737,757

27

SLIDE 30

14

Aamal Company Q.S.C.

NOTES TO THE CONSOLIDATED f fNANCIAL STATEMENTS

For the year ended 31 December 201 3

INTEREST BEARING LOANS AND BORROWINGS

NOles

Malilrify

2013 QR 2012 QR CoMl Loan 2

Loan )

Loac4

Loan 5

Loan 6 Loan 7

CoMB

Loan 9 Bills discounted

(0

(ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) lune2014 Seplember2014

January 2015

November 2016 December 20 16 November 2017

Jllne20 l J December 20 \ 7 OClober 20 19 172,070,387 440,000,000 50,544,000 40,261 ,621 81,387,109 19,920,036 6,] 43,890 62,626,967 42,522,794 915,676,804 298,324,180 440,000,000 10 J,088,000 57,955,030 100, 168,750 2 1,300,492 4,077,281 7,828,71 1 35,000,000 1,065,742,444 Less: Defe rred finatlcing cost (771,503) (897.148) 914,905,301 1,064,845,296 Presented in the consolidated statement of financial positioo as fo llows:

20)3 QR

201 2

QR Current ponion Non-current ponion 749,520,820 165,384,481 825,568,489 239,276,807 914,905,301

1,064,845,296

The deterred financing costs cons,St of arrangement fees. The movements m the deferred financing costs were as fo llows:

20/3 2012 QR QR

At I January

897,148

332,661 Addjtions during the year 1,062,565 912,506 Amortised during the year (2.18&,210) (348.019) At 3 1 December 771,503 897,1 48

28

SLIDE 31

Aamal Company Q.S.C.

NOTES TO THE CONSOUDATED FlNANCIAL STATEMENTS

For tbe year ended 31 December 2013

14 INTEREST BEARING LOANS AND BORROWINGS (continued) Nole.c (i) Loao I i, , USD 93,000,000 impon 10,n moi lily obtoined to refimnee 'he Icn

e~

• f " edit The 1

0" "'IT,,,

interest at commercial fate and the interest is paid at monthly intervals. The fucility is repayable within ISO days including the usage period under letter ofcredits.

(ii) Loan 2 is a secured bridge loan obtained to settle an existing loan and working capital requirements of the

• Company. The loan carries interest al coOlJl'lercial rates and interest is 10 be paid on quarterly basis.

(iii) Loan 3 was obtained for the pW'pOse of financing capital e,'{penditure and direct payment to suppliers, contractors and 5ub-controctors. The 10011 CMries interest at commercial rate and the interest is to be paid

• qUar1erly. The facility is repayable in IS quarterly iostallmenls starting I July 2011 and ending I January

2015. (iv) Loan 4 was obla ined for conSlruclion o r an inveslmenl property. The loan is sec\lJ"ed by 0 primary mortgage

• ver the some property and corporate guarantee of the Aamal Company Q.S.C. Tbe loan carries interest at

commercial market rate and is payable in quarterly instalments. (v) Loan 5 represents a loan fOlcility obtained in two sepnro.le tranches amounting to QR 309,825,000 (USD 85 million) for the purpose of refurbishment and construction of fo.ciJities io one of the investment properties. The loan is repayable In 16 equal quanerly instalmcnlS for individual tranche, commencing from March 20 1J. The loan carries interest at conunercial r:Jtes. (vi) Loan 6 represents secured loans obtained ffom a commercial bank in the previous periods, for the purchase

• f heavy equipment and machines and were merged on 15 November 20 12 as a combined loan. This loan is

payable by 59 equal instalments of QR. 426,000 with (I last inSlalment of OR. 438,326 with effect fro m 01 October 201 3. The loan carries interest at commercial market rates. (vii) Loan 7 is il tmst receipt banking facility obtained for the purchase of inventories. This carried interest at conunercial market rates. This loan was fully settled during the year. (viii) Loan 8 represents secured loans obuined from a commercial bank in the previous periods, for the purchase

• f delivery trucks and machinery and were merged on 22 October 2012 as a combined loan. The loan

carries interest at commercial market Tates and is payable by 59 equal instalments o rQR 160,000 with a last inSlOlmem ofQ R 128,000 with effect from 31 December 2012. (ix) Loan 9 is an Islamic Financi ng Arrangement obtained for construction o f a manufacturing plam and as o f yearend balance represents partially drawn amount out of totil1 facility of QR 65,568,000. The loan is secured by joint corvorate guarantee by the shareholders. The loan carries profit at Islamic Financing rates and re-payable in qu.a.rterly instalments starting from the end ofthe 24 months gmce period from the date of loan drawn. (x) Bill discounting is a loan facility from banks. The purpose of the arrangement is to discount bills locally and carries interest at current commercial filte. 15

EM PLOYEES' END OF SERVICE. BENEFITS

Movements in the provision reHecte<! in the consolidated SLo'1tement of financial position were as follows: 2013 201]

QR

QR At I Jan uary 18,111 ,763 17,877,937 Provision made during the year 4,056,969 4,205,499 Acquire<! through business combinations (Note 4) 349,272 End of service benefits paid during the year (2,210,756) (4,320,945) At 31 December

19,957,976

18, 111,763

29

SLIDE 32

Aamal Company Q5,C

NOTES TO THE CONSOLIDATED FINANCIAL STATEME'.:TS

For tile y~ar ended 31 De~mber 2013 16 SHARE CAPITAL 2013

2012

QR

Q,q AtI1!l1)nud 600,00\),000 (20 ,2: 544,500JJOfn shares ofQR iii Cilch

6,0i)i},QOOl}OO

5,445,0<)0,000 21)13 2012 Numher of

siMt';!S

QR

shares QR

Issued Mtldfully paM At lJamld.,,), 544,SfW,llOfJ 5,44:5,(100,001) 495,000,000 4,950,000,0,)0

1:;511C ofbonus S:1i1:-C\

___ 5,50~,O

555.000,000 49,SGO,OOO 495,000,000 At 31 Decen:::.ef

6,(}OO&!!Qllf1(1

• --144,50O,000

5,4~,O,O

All &":ates ,m~

• f:;a:110 cl.,ss and caL"'! equal voting rights.

17 LEGAL R.€5ERVE

As required by Qatar Com:nert:ai COfr.p7lnie:s' Lav.' No.5 of 2002, lO'!fp of the profit for the ye:.1J' as a rru:1imllli". silould be m:msfened to legal re~erve. The reserve is !lot norma!!y [ly:.ti!ab!e tor distribution except ill :he

cixcuJUstllrtUS stipulated m the above ~lemi0ntd GIW

IS HEVE1";TE 2013

l{)n

QR

QR

Sale of goods

1,726,893,265

i,709,057,~(iO

Renlal income

:UiO.362,322 133,117,509 S;::'\-ice income

85,869,%5

33,940,731 CornrrusslOlL Incentives and agency fces

4,\},469.5S1

4:,2~_,632

2,122,59$,)33 19 DIRECT COSTS 2013 2{)i2

QR

C 051 of inven!('f'eS recognised.lIS an exptns:;

1,522,929,956 ;,497,210,830 Din;d s"L1ries lmd wages

60,1 [1,336

51,378,56-8 Operating eXpenses on nml estate p~opet1les 36,{)711,316 30,41H,504 fJepreciatiort (Kate I J)

33.164,382

B,030,91£ Operator's marh,gerrt6nt fees 14,508,588 li,667,989

Provisicn :Qr obsolete and skw< moving mvenlories (K{)tc 8) 2,380,617

2,208,263

Other operating i'lxpenses

_31.~3\982

_ ::;3,674,946 1,702.139,171 J;?S9,653,OI t>

SLIDE 33

Aamal Compa:::ll,,-y.;:Q,.;;'S:;,;'..:C,;..'________._______._ NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For <.he year ended 31 December 20 1.1

2G

OTHER NeO\iI':

2013

20J3

QR QR Interest mcume

2,824,216 2)3'14,392

Profiv"( loss,) 00 disposal of property, plant aoe eqUlpmem

737,647 (l73,62G)

Eargain ptm:;n;Jse gain (Kote ,t)

8,360,793

MIsceJlaneous income

5,723,356 2013 2012 QR

QR

Manllgetn:?UI hrQ empl(,yees' ws:, 55,170,302

55,<\0,35·1

Rent 23,596,799

2::.594,915

Allowance for impaimlcot oUr sue aC{;Ql1ot$ rc(X:jval;le (Nole 6) 1,294,59(i 11,613,120

• flBumcce. ane profc&:iitmJI fees

2.IU9,263

2,09J,902 Corununication OOtHS

1,935,123 1,649.155 Trllining "tid o.uS;fjt'$s developmccl

950,476

L095.764

Re]X1in and mainle-nilnce

2,1)11,SflS

2)2'

I Poslag:-c:, prjnting acri stationery

610,,299 541,159- !vlls<dlancous expenses

_~.~,64 1:<'2

• ~

125,162,812

22

fIN~'lCE

COSTS 2013

2&!2 QR QR

Inleres! e\pen~ 42.866,312

57,73U4B

Am(vtisJlior;> ofdef¢rred financiog coStS

__

2,l)tl2:.?6~

:>3:.,661

44;930,877

"'.­­­­='

58,063,009

23 BASIC A~n nH,UfED EAR'ilNGS PER SHAR.i'~

Basic trdTJogs per "hue is ca!culati:d 0y llividing the pwfill:0( Ihc year attriouiabk (0- equity r.oldc­5' of the parent by lhi: w~iglwxi av"rage number of ordinary shares 0!J,standirJg du.<ing tht'_ year. During Ihe year, lil,~ Co:np:my i­;;sued and CBpii3!lzed bonus shares lnd awmJingl), me previously ~eportod

earnings per sha:c have blOM restatc(i 20i3 2012

Profit feT the year auributable to C\luity holder<; of the­ paren, (QR) Weighted aVCTage number ofshares outstanding during the year (i) Basic ?J:d diluted earnings per share (QR) 0,85 599,85U,413

..-

"~.'.'~.'-.~'~'~"~-"

..~.,.-

J 1

SLIDE 34

23

Aamal Company Q.S.c.

NOTES TO THE CONSO LIDATED FfNANC[AL STATEMENTS

For tbe year ended 3 l December 2013

BASIC AND DILUTED £ARNINCS PER SHARE (continued) NOles: (i)

Th, w,igh" d m nlg' "urnb" of ,h,res foc 'h' P"""''' of " lrul"ing ~mi"gs

pee share h" bee" "kulated

as follows: 2013 20J2

QU3lifying shrues allhe begi ll1ling of the year

544,500,000 544,500,000

Effect ofbonus shares issued and capitalised

55,500,000

55,500,000

600,000,000 600,000,000

Less: T reasury shares

(149,587) (i35,7SI) Weighted average number of shares at the end of the year 599,850,413

599.864,249

(ii) There were no potentially dilutiw shares outstanding at any time during tbe year and hence the diluted

earnings per share is equal to the basic earnings per share.

24 COI't'IMITMENTS

20 1]

2012

QR QR

Estimated capital expenditure approved and contracted for at the year eod but not provided for: Investment properties 2,964,000 8, 139,063 Property, plant and equipment 16,386,500 63,759,762 19,350.500 71 ,898,825 Operating lease comm.iIOlenlS, under non.cancellable lease agreemenlS: Payable wilhin one year 990,806 702,000 990,806 702,000

25 CONTINGENT UABILITlES

The Group had the following contingent liabi lities from which it is anticipated thai no malerial liabilities will arise.

2013 2012 QR QR

Letters ofguaramee 474,551,239 394,255,203 Letters ofcredit 7,678,499 194,299,384 NQles:

(i) l.eH«> of gu","'", indud, penonmn«, tend" ' nd bid bonds ,"d p'ymen< g"",""" gi"" to

suppliers and contractors by the Group in the ordinary course of business, which will matme within twelve months from the reporting date. (ii) Letters o f credit are provided by lodging documents to the bank tor purchase of trading goods from foreign suppliers, wruch will maMC within thJee to six months from the date or tile Iransaclion. J2

SLIDE 35

26

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year eoded 31 December 2013

RELATED PARTY DISCLOSURES Related party transactions Related parties represent major shareholders, directors and key management persortOei of the Group. and entities controlled, joimly controlled or signjficamly innueoced by such parties. Pricing policies :md tenns of these tnlOSaclions are approved by the Group's management. Transactions with related parties induded in the consolidated financial stalemenls were as follows: 20lJ

2012

QR QR Sale o f goods and SClVices 419,034,048 415,225,221 Rental income 1,980,473 2,069,386 Purchase of goods and services 159,1 38,018 300,835,596 Rental expense

21 ,780,G78

23,397,334 Bargain purchase gain 8,360,793 Net assets acquired 78,803,585 Relat ed party bal nnces

AmountS due from and due to related parties are disclosed in Notes 7 and 13 respectively. These balances do oot carry interest and are repayable OIl mulU:'lUy agreed dates, generally within one year. The Group did not record any impairment of receivables reJatiog to amounts due from related pat1ies in either year. This assessment is undertaken each financial year through examining the ftnancial position of the related party and the market in which the related patty operates. Parent The Group's ultimate parent is Al Faisal Holding Company W.L.L.

• Compensation. or key management personnel

The remuneration of key management dming the year was as fullows:

2013 2012

QR QR Short-term benefits 7,904,794

10,795,95\ Employees' end ofservice benefits 408,934

439.776 8,313,728

11,235,727 33

SLIDE 36

AamaJ Company Q.S.C

NOTES TO THE CONSOLIDATED FINANCIAL 5T ATEMENTS

For the year ended:; t Decernber 2013 Dilling the year, 1he Group issued a :XHl.US share of 10.! 928% of the paid tiP share capilal hdd ilS at 31 DiX2mber

2(JJ 2, mnmuning to OR 555.000,000, using retamed earnings as of3! December 2012 (20l2: Doe share for every

ten shues held as of 31 D.::cember :::Oll. amuunting 10 QR 495,OO(),OOO, \.l:;ing reta1ned earmr.gs 2.8 or 31 Decen:cer 2D II J- 18 SEGMENT INFORMATION For J:)iloogement PUIp<JM':'" rhe Group i::; organised into business unit'; bused On LlJeir nature of Acttvitics /lud nas

fonY reportable segments and the Head Oftk<." as bllow$'.

Propert}"

Tbe seg:ntn, cO!l"ists of City C~nler

Q:lta~

Brunch and A.amal Rea! Esmte Branch whicb ll[c invoived in l&Ii;iog

the fa.::J1ities of retail outlet con;p!ex, re;d e5ttlte ,nve:;;(m<:n,$ and property remal bu",ine:s~s,

Trading mld distrib-wion' The segmeul Involves wholesalB andlor rBtail distribution of phamlaceutlcai and consu:nable i1ems, hume Epplianccs, medica! equi?menl, t:­Tes ill1d lubric,mt« and II1UllitnEl printing, The scgn:('rtt includes 6c following

entities;

.. Eotl Sina Medical Branch

.. Aaen! Medical Braudt .. Amcill Tro.ding and Distool.ltlqO Branch

• Foot Care (erier HR:nd)

.. Good llre Pbannacy Bf'4Uch

• Al Fl'lf?Jdaq CO;llpaf.Y wJ~L.

InduS/Nol manu/acturing,' TIle s0groent IOvolves Ulahu:a:ctrumg, whole~w.!e alia/or rewi! dimibUlioti of dcc!nc cables ,!lid tools, "ggregJ.1es._ ready­I'Ux connole and cement bI0C"'~

lI1,d provi$ion of servlC¢$ in rdation to iODll.<;roa! It.vestment, repair aJ,­d

Gonstruction of power plwts, liiiding of LED ilgluitlg products und management of industn;;;l enterpnses. The

segment ircludes ,be folloVting ¢ntiti.:s;

• Aam,,1 Cemert Industries \\ LL

.. A;uraJ Re"dy1Yl(A BrQTlch

• Doha Cables Qawf \\lLL

.. Senyaf IoolJic1es Qatar Holding W LL .. Advanced Pipes ar:d Casfs CompQTly WJ" L

• GuJfRoch Coro,;:any WLL

.. Ci~San Trading Company W,LL

.. hmovafive Lighting Compar.y W.LL

Managed services. l:!e segment inyolvc~

provisloH of hOllsei<ecpmg :mi cleaning services, fucditics n­::anagemerJ services, C!1e:gy s(:tvices. ttl! centfe s<:rvicf)s, buildiqg lnaintemHle< aml acting as travel ;,gen:s, The 5cgn'l'tnt includes the foUowing c.nti(l¢s;

.. A"n13! ServJce Branch .. :\amli! TnlVeJa l5t;m;;h

.. f.­eco Gulf Co. W LL.

.. Jolinson Controls Qattl!' WJ,.L

SLIDE 37

28

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended ) L December 2013 SEGMENT INFORMATION (Continued) Head Office:

It provides corporate services to the branches and subsidiaries of the Group. The managiog director of the Group monitors the operating results of its business units separately for the purpose

• f making decisions about resource allocation and perfonnance assessment. Segment perfonnance is evaluated

based Oil operating profit or loss of these segments. Transfer pricing between operating segments are on ann's length basis in a manoec similar to Iraosactions with third parties.

SLIDE 38

Aamal Company Q.S.C.

NOTES TO THE CONSOLIDATED FINAN CIAL STATEMENTS

For the year ended 3 1 December 20 13

28 SEGMENT INFORl\1ATlON (continued) Operating segments: The operating segment, after elimination or ioter-bra nch and inter-co mpany lrnnsaclioos, is presented as follows: Trading (/nd Industrial Managed For fh e year elided 31 December 2013

Properly disirjblliioll

manujocljlring services

QR QR

QR

QR

Revenues

• h lemal parties

260,360,172

578,909,983

1,231,522.768 Sl,802,210

• Inter segments

1,253,914 6,843, 11 8

29,639,873

34,450,52 1 Heat/ Office

QR

Elimino/ions QR

(n,187,426) II,

Tolal

QR

2,J22,595,133 261,614,086 585,753 ,lOI 1,261,162,64 1 86,252,73 1 (72,1 87,426) 2,122,595,133 Operati ng results Fair vallie gains

Profit I (loss) ror the year Depreciotion

200,811,944 245,051 ,107 445,863,051 2,066,290 86,492,834 86,492,834 4,345,438 22,636,250 22,636,250 33,049 ,089

5,157,436

5,157,436 1,760,305 (47,864.882) (47,864,882) 1,334,382 267,233,582 245,051,107 512,284,689 42,555,504

36

SLIDE 39

Aamal Company QS

NOTES TO Tl CONSOLIDATED FfNANClAL STATEMENTS

For the yeM ended 31 December 20 13

28 SEGMEN'f INFORMAnON (c{)tltioucd) FOf the yearr.:nrkti J f DccemOer 2(J12

QR

Revellues

• E.xlcml"J partiel

233.1 17 ,509

• Inter segmcI11S

1,168,935

• - 234,236,434
• ~-
• ~-

Openning results

18!,S23,67t Fmt value gains

J8S,79?-,4:~G

pront ! {LOllS) for the ;rear

570,616,154

! ,gt;3,659 No/(':

lnler·."""gment revenues are eliminated on t:QHs{)!idntiOH_

T!adiug ftfid

disl! d)N.tion

QR S2S,3{l7,661 3,24 j 533.549,3114

~

• ~-

5'1,384,831': 54,384,338

.

4J;9R,71}(i

Indus!; idi

mam{fm::turing QR

1,255.694,537

1,29U25,lS4 56,727,059

56,727.059 32,752,742

sl!n<ic(;s QR

55,216,665 29,39H;31 S4,6lOJ.96

7,427,414 7,437

[,908,067 ilf'ild ()}jice

QR

(64,(,41,976, Elimination;

QR

(74,:tH,'i2oJ Iii Totul QR 2,069,}36.372 2,069,336,372 235,721 (64,641

1,31 'f,613

624,5! 42,541),861

SLIDE 40

Amnal Company Q$.l'.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Por tnt' yeart'ndeJ 31 De~embcr 2013

28 SEGMENT JNFORMATlON (contiutll,'d, Assc-ts. and !labilities:

Tn"";"g alld lndtrstfw! At31 December 2(113

distnbllrior, manufacturIng

sen'ices HeadOJJicc

EliminatioilS

l'ola1 QR

QR QR

QR

QR Cum."nl 3%t{S 227,552,338 620,807,979 61,349j 415 S()6,)86,922 (301,636,995) 1,477,366,090

Noo"l'ucrcnt DS:;:eIS 6,411,868,160 12,604,763

622,386.238

4,348,876 (i,624,548

__p,243!8051

780 'fotal asstl$

6,639,420.498

1.194

1,243,194,217

65,698,291 513,Ql1,470

=-<!03,H8{l,~O()

8,532,95'-',870

• ~-

.-,.'~ ~-~

• CUIT{")llliabilitics

280,995.335 1(3,511,J60

634.4(12,777 2{l,070,8lJ2 496,261},185

(3CH,636,995) 1,249,603.264

Non-current iiat}Jlitics.

7l,70L5V2 8,008,485

HlD,{i16,~43_

3,181,668 t433,799

____ ilj:5!34?_,~57

. __.. --

Totul liahililics 353,696,897

",___~!'41,5!;9,~4~

734,419,720

.~497,6~?~

1,434,945.711

• ,~-.~
• ~-~
• ._2?,~:4~

(?~?9~

C1pil:d expcndimn; HI)

WO.743,OOj{

1,397,742

_~47,1l2~-,-~50

~51

~

1~,623,821

~1~_

• ~-
• ~-
• ~

3&

SLIDE 41

28

Aamal Company Q.S.C.

NOTES TO THE CONSOLIDATED FfNANClAL STATEMENTS

For the year ended 31 December 20 13

SEGMF:NT INFORMATION (continued) Assets and liabilities (continued); AI 31 December 2012 Properly

QR

Trading and

diSfriblllion

QR

Indus/rial manufacfuring

QR

Managed sen/ices

Q R

Currenl assels Non-current assets 146,491, 186 6,121 ,864,484

296,442,5 12 9,03 7.264

734,68 1,.258 549,267,235

51,387,098

4,71 1,439 Tolal assets 6,268.355,670 305,479,776 1,283,948.493 56,098,537 Head Office

QR

468,325,024 6.713,643 475,038,667 Currentliabili'ies Non-current liabiLities 273,444 ,748

1 J1,0 15,024 86,054,583

7,434,286 669,214,261 128,8 14,977 2 1,938,953 2,87 1,199

480,393,637 1,253,084

Totil lliabiliti cs 390,459,772 93,488,869 798,029,238 24.8 10, 152 48J,646,72 1 Capila! expendirure (<II L 72,865 ,878 1,281,254 66,47 J,356 716,9 13 149,045

Notes:

(i) (Ii)

Inter-segmeot balances are elimioafed 00 consolidatio n.

Ca.pital expendiTU res consist of additions 1

0 propeny, plant and equip ment and iovestmenl properties. Eliminations

QR

To wl

QR

(273,735,776) (i) (2,030,8351(i) 1,423,591,302 6,689,563,230 (275,766,61 1) 8, 113,154,532 (273,135,777) (i) 1,257,3 10,405 257,388,570 (273,735,177) 1,5 14,698,975 24 1,484,446

39

SLIDE 42

29

Aamal Company Q.S.C NOTES TO THE CONSOLIDATED FrNANCIAL STATEMENTS

For the year ended 31 Dc<:',m:ber 1013

Fr;-.;A]~ClAL

RISK MANAG£M&'1H

Objccth"es and policies

',f:e Group's principal !)uaucill! liabilities comprise im<:res.l bctmllg loons and Ixm:owH,gs, baR< ovetda.!1.s, amounts

due to fclaled par1ies and tracte accounts payable, The mai,n pUlJX'Si' of thesc financial liabilities is 4J mise firmn;:;e :or 610 Gr:mp's operations. The G;0*JP bas various fimmcial assets such as ttadc accounts receivable, lI.nlOlmts due from related parties, bar,k balances, t<:!Cntion receivable and other receivables, which aris>:; directly fran' its cperuoon&.

The maiH ri~ks an3ing J}oru (be Group's UnariCJlll i'llslrumenls jl;'e market risk, cretiJt nsk and h:::mdity risk. Til" BoarD ofDtrcctO!$ reviews end agrees policies for mzrAgbg Ca<;;t ;,f,hes£; ri~k;" ."ihkh arc summariscd beloW'.

;VIarktt risk

?¥fatket risk is the risk U:m changes in market prices, $Uch as int"fcst rates and hreig!\ <:tmeocy e\.ct14nge rilles Vltl1

affect the Group's profit, eqwty Dr value t,f its hoJdiI15 of financial instr'.l[Th:nls. 'rile objec{iv£j of marke1 risk mUnllgcrl',cnt is to manage u:ld 1.~ontr(l tho tr);)rket risk expo-sure ,vithir. acceptable par;:.fI'-etcJ$, while optimising

rerUID,

Equit) price risk. &juity prtce risk is the risk .hilt the Group '&earnings will be affected as a rc:m!t (If :lucttt:ltions in f:m v;due of

~qui:->,

• mstwnents. Eqll.iry price risk arises from availabte"tor~sale
• inv2strnems. However the Group's exposure to eqmty

price risk IS minima! as II doesn', hold sit,'l)if!trmt a.?ilableAor-511le inYestrmmrs, [merest rate risk

The Group's fimiru:ial £S5o.:'t; &I;d liaojlilies (!'.at R:l; $:u':Jject to int,;~ rate m,k compnse brmk depo:;ils, inter,;st

bearing loans and bOITQwjags and bank overdr-afts. At the reponwg dalt\ tbe [merest rale pronle of Ill.; G:oup's intexst bearing fbi4rdd instruments "''''' as f",liows:

11113

20i3

QR

QR

Fued liI/eryS! refc insfrvrnellts: Fm,mcial assets

113,035,,962 111,913,394 FrO,ltwial liabilities

• 1!~2;037,12l)

\ 125,2t4,3~1

{9,!)OI,~

(13,350,972) Fhlllting in/ireSI rate !ns/!"1lm<t!}rs:

F;!\anc\tl~

::Isseis 127,024,345

ID4,384,8;o

Flll'l.ocial liabilities

_-,("i~?,934,7~

(94),)48,926)

(836)64,116) The Group's exposure to t~

ris..\: of changes in marXet interest f"<ltes relztes primariiy to the Group's. financial assets and lizbitdic$ with t1O<ttir,g interest mte~.

lhe loEowing !able demonstrates the &mitivity nf the eonsolidattXI statemen1 of income 1:) !ca'!ona::'ly possible

chonges in in1,jf>::st rm:es by 25 basis points.. with all othe;' vari,)ble3. hdc u;mstant. The sensitivity of the CoiK~ljclati':d statement of inc(!me \$ the eft(:.ct of tb:: assumed changes in lnterdt rales for one year, bf1sec\ on the floating rate

financial assets and fimmcial hablhw;$ held at 31 f~r. The effect of

deae-ascs in interest ral~

is cXp0Ctct: to

be equal and opposite to the effect oHlle increases sllQvro.

Changes it! E/ftx:! OIl

00513 [:om's

profit QR 2013 Floating mterest Hlte instruments

• -'--2$ b.p.

(1,649,776) 2012 Flv-ating ir:k'fi':St rale instrumenls +25 b.p. (2,09[,9(1))

~-

...-

...-~ ..~.

40-·------

.._

.._-

SLIDE 43

29

Aamal Company Q.S.C.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For the year ended 3 1 December 2013

FINANCIAL RISK MANAGEMENT (continued) Foreign currency risk Foreign currency risk is the risk lhilt the value of lhe fi nancial instruments will fluctuate due 1 0 changes in foreign

exchange rates. T rade aCcOlmts payable and accrued expenses include amounts due in foreign currencies, m:liniy US Dollars, UAB Dirhams, Great Britain Pounds (GB P) and Euros, of which the Group has a currency risk primruily on the baJ:mces payable in Euros and GBP amoWlting 1 0 QR 14,400,634 (2012: QR 17,214,046). The Group does not hedge its foreign currency exposure. As both Qatari Riyal and UAE Dirhams are pegged to

the US Dollar, balances in US Dollars and UAE Dirhams are not considered to represent significant currency ris k

to t.he Group. The table below indicates the Group's foreign currency exposure on its monetary assets and liabilities. The analysis calculates the effect of a reasonably poss ible move ment of the QR currenc y rale against the Euro and GBP, with all other variables held constant, on the consolidated slatemenl of income (due to the fair va lue of currency sensitive monetary assets and liabilities). The effect of decreases in foreign currency exchange rates is expected to he equal and opposile 10 the e ffect of the increases shown.

Incr&1se ill

f oreign cUlrency rate

/0

the QR

Ellecl

• n profil

QR

2013 +5% (720,032) 20 12 +5% (860.702) C redit Tisk Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and cause the other party to incur a financial loss. TIle Group's exposure to credit risk is indicated by the carrying amoWlt of its financial assets, which consist principally oftmde accollilts receivable, retention receivable, amounts due from related parties,

• ther receivables and bank baLances.

The Group sells its products and provides services to various panies. It is the Group's policy that all customers who wish to obtain on credit lerms are subject to credit verificalion procedures to ensure credit \Ilonhiness. Each new customer is analysed individually for creditworthiness before the delivery o f products Of" services. Customm tbat fail to mett the creditworthiness may transact with the Group only on prepayment basis. Property rentals are mostl y received in adv;tnce or conlr.lC led with post dated cheques. 10 addition, receivable balances are monitored on an

• ngoing basis and the purchase limils are established for each credit custoroer, which are reviewed reguJarly based
• n the level o f past transactions and senlement. The Group's max imwn exposure with regard to trade aCCOWlts

receivable, net ofallowance renected allhe reporting date, was il.S follows: 2013 2012

Business SJ:gmelll: QR QR

Property 15,478,832 19,386,326 Trading and distribution 194,343,597 179,748,274 Industrial manufacturing 183,119,753 131,578,668 Managed services 18,069.385 14,547,389 411,011,567 345,260,657 41

SLIDE 44

29

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For tbe year eoded 3 J December 2013

FlNAJ."ICIAL RISK MANAG EMENT (c-o Dtinued) Credit risk (continued) With respect to credit risk arising from the other financi31 assets of the Group, the Group's exposure to credit risk arises from default of the counterparty, with a maximum exposure equal 10 the canying amount of these instruments as follows:

2013

QR

20/2

QR

Bank balances Amounts due from related parties Retention and other receivables

436,136,756

214,439.950 48,290,351 367,881,29 t 171,525,363 74,082,203

698,867,057

613,488,857 The group reduces the expoSltre of credit risk arising from other financial assets by maintaining bank accounts in reputed banks and providing services only to creditworthy related parties. The management considers the bank balances and amQUI"IIS due from related parties as high grade financial assets and lfade accounls receivable and other receivables as sundard grade financial assets. When a fin<mcial asset is identified 1 0 be impaired, the managemoot downgrades such assets to impaired category and provides adequate allowances. Liquidity risk Liquidity risk is the risk that the Group will not be able to meet its fmancial obligations as they fu ll due. The Group's approach to managing liquidity risk is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both nonnal and stressed conditiom, without incurring unacceptable losses or risking damage to the Group's reputation and is to maintain a balance belWeen continuity of fuoding and f1eilibility through the use of bank overdrafts and bank loans and borrowings. The Group monitors its risk to a shortage o f funds using a recuning liquidity plaOfling 1

• 001. TIllS tool considers the

manuiry o f financial assets (e.g. accounts receivable) and projected cash flows from operations. The Group's teons

• fsales or services require arooUIlts to be paid within 30-90 days from the invoiced dale.

42

SLIDE 45

29

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

For tbe year ended 3 1 December 2013

FrNANClAL ruSK MANAGEMENT (contiQued) Uqujdity risk (continued) The table below summarises the ruaruriJy profile ofthe Group's financial 1 iabililies at 31 December based on contractual undiscountcd paymeots.

2013

Interest bearing loans and borrowings Bank overdrafts Trade accowus payable Other payables

Amoun

l ~ due (0 related panles

201l

Interest bearing loans and borrowings Bao.k overdrafts

Trade accounts payable Other payables

Amounts due to related parties On demand

QR

6,836.280 6,836,280

011 demand

QR

2,885,090 2,885,090 Less than 3

months

QR

521,324,473 303,638,792 47,406,830

25,30~480

898,675,575 Less thall 3 months

QR

469,839,033 107.54J.JIO 37,543,236 19,645,04 1 634,568,620

3 10 J2 mOlllh$

QR

239,333,328

16,378,865

20,210,580

2,89~1l

298,816,884

3 to 12 monlhs

QR

365,476,972 159,621 .37 J 24,745,342 30,092,716 579,936,401

1to 5 years

QR

J 60,092,748 160,092,148 1 to 5 years

QR

248,472,226 248,472,226

> 5 years

QR

25,261,598

25,261,598

> 5 years

QR

7,648,000 7,648,000

TOlaf

QR

947,012,147 6,836,280 320,017,657 67,617,410 48,199,591 1,389,681.085 Tota!

QR

1,09 1,436,231 1,885,090 267,162,681 62,288,578 49,737,757 1,473,5 10,337

43

SLIDE 46

30

Aamal Company Q,S<c.

NOTES TO THE CONSOLIDATED Fl?\ANCIAL STATEME\TS

For the year ended 31 December 20 t3

21}

F~ANClAL

RlSK MA"iAGEMEl\'T (continued) Capital management The Board's policy is to maintain a strong cepit!1 base so as to rnainmin investor, creditor and market ronf,oonee and

to SUSWlJ) fumre dc<.clo;nnent Gf the bu;;ines!t The Board of Directors rr.onitortl the t;apital, whkh tbe Group defines

as wlal $p.arclo!ders' equity, excluding non·cornroliing imerests and the level of dividends to orrunu.ry srarellOJdcfS. The Board also ;reeks to ITIaimain a balance between the higher (ctums (hat might be fA.-~$ihle

'With higher leve!s of

borrnwings end Lle edvnrJ!ages and security ::named Sy it sOMd Cilpitai posi[ion. The GfCup'~ k1rget is to achievfl a

return on slureholders' equity (exc'lJding aon,wurrolJiug iorcf(;sts) greater ll'l(ll1 {he wcighlcd average in:.:res! ex;xmse on mrerest bearing Ivens and oorrowing".

The (lf0t'-p nl;)nDg-e" ils cnpital structure and makes adjust;neal" lOll in light ofchang2s in economic ::nd btt,incss

cor:djl{ons and shareholders' expe..."1ation.....Jo chmges \vere· maCo HI L'l€ objecttves, poli';:lCS or proCCSSC3 during the years e.r:ded 31 D~mber 2013.:md 31 Dtccmlxr2Ql.2.

The Group monitors the capit2J using a gC!l.ting fatio, which IS dep! divided by ,caplla! plus debL The GtOw,>'s policy

is to keep ttJe ge-anng rmio bclew 40'%. Tbe Group iLdtdes withb debt, imete-51 bea.>ing loans ard ~OITORlngs, less cash and cash equtVaknts. Capltal includes eqmty attributable 10 the equity tolders oft~e parcr:t 2013

QR

2(;i2

QR

fmerest bearing loans and borrowings l...css- Cash and cas;' <Y:JU!valcnts

9i4,lJ05,301

_~

(429JfJ{l,4761

1,004,845,296 (:,64,9')6.201)

Net debt

To!a! capital Capita! and net debt 699,849,045

~ringrtio

FAIR VALt:ES OF Fl~ANOAL

f~STRUME"\TS

Finar::cial iostrumenL~ cOlnprise tina~lctal assetS carl finailcialliabilities. Fmancial assets col'J,ist of bank balance), short 1Cm; bank dcposi!s, amounL" dve d'om rc);<ted parti<)$, rekntion

and other receivables and ttade accolmis r;;ceivab!e, Finatlclll habi!ilics c>:msist of bani< ovcrdratls, jn:erest

bearing lOil!1S and bOr:'owings, amounts due (0 n:l:iled partiG~ ane trade ?x,:-ounls payable. The- fair values of ,hese financial inStrumen1S except Jo:-- imCf,est bearing loam lHld bOlTo\ving,;; a?proKimate lhdr cMryinJ?, v,lh::es due to the S;lort temt mzrutiiles or' these instrument;. Tllc faiT value of iotcn:st beating !Nns and borrowin2s a:e estimate(! based on discoumed <ash flows twin!! int,;..'"('s\ rale- cune-ntly nvaila':>k fur tilt; debt or sinuiar tetn:lS an-a rell1#lmng matunties"

.,

SLIDE 47

31

Aamal Company~Q".=-S.c:C.:.

.. ______________~ ______

~OTES

TO THE CONSOLIDATED FINANCIAL STATEMENTS

For fhe year ended 31 December 20 t3

SlGNIFICANT A..,';SUMPTIONS, ACCOUJ\TING JUDGE;\,lE:1TS AND F..8TIMATF,S impairment (If accoonts receivable !\n e:;.trnw:!e of lhe collectible a:noun! of trade accounl'> recc:vable is made when collection of the full lHl1OU!:t i~

nO

loog.er probabk, FOI ,nCividualty significitIl\ amounts, this estimation is p~rformed

• n an indh-idllai !:.a$[$, Amom:ts

wHcb arc not indivldl1.1Uy significant, but wluch are past due, ZTe :tsscssed collectively and an aJlQwaccc applied

uc()r~J.ng

to the length of lime' past due, based oc histnncal recovery nlJes.

hnpalrment of inH;ntnries

laven!oncs are held at tho lower of co;;l .and nol realisable value. \\InIOn inventon¢$ becon;e old or 0-~&,lete, an estilTJ!te is mat:e of their net j .::alisable vulue. For indiviol.hlUy significant amountS this cstin:::aunrt is performe.c all aD lndividwl o?'sis. Amotlnts whieh are fl0t individually s.ignifican(, btll which <Ire old at obsolete, wx: 'L<,.Sessed

wllec!ivdy m::d a provisior. is applied sccnrding to the invenrory type and {be dep.)"ee of ageing 0\ cDsolescc;1ce,

based on anticipUled selling prices.. Classifi>;;1l.tion of El Sew(>dy Cable:; Qatar W.LI", ali a j(lint vwture £1 So,vedy Cables Qatar is a limited hability company whose kgal fum' confers SCprm11ior. bernt'en tbe jXliiies 10 ~he jomi :lfranpement ;S.nd the Company Itself FurthenrlOre, then; I.S no oontractua] arr,mg,elT!eot or any oibe:: {aus aod circumstril:iCe$ that ioci.k41t:o th;,t !he putic5 [0 the joint flJTIlr:gernelit bave rights to the ?'sset'l and obligrtdons fo~ the li.abilities of the joint ilrrongement Acoordingly, El Sewed;-' C[jbl~s Qamr WLL. is d.assifiecl 7S a joiut \'enrtrr" of

.he GWt,p. impairment of goodwill

G0oo\vj)1 embedded in

th~

co:;t 0: a.:;quisitior of subsidiaries and eqmt'j-:iccounled iflV(stees :ire teswt. for irl1jXlirm?nt a.'Huaily Tbe calculations of value [n use fO( cfish gecj!~r;)li:lg units ('loring to real {'::;nte projec{g are

rtost sensitive to tin: IDHowin.g assumpti0:15:

Gros> /i1wgin.· Gross Ilmrgins arc l:msed on av.:rage values tu;hje,,0d in (he [X'rioo preeedhl.i! (;,e siaM of the budge; ;x:nod. T:1esC at(' mcreased over the budgel period for ;mticipat<X\ efficiency Hnprovem;:ots, DisC{)unr r(!!es: Discount rotes represent th.; c\l1tent mark.;:, as~smetlt

• f the risks specific te e:.\ch cash geocroting
• unit. regarding lhe time value of money ilnd mdividu)l ris:ks of 'he tmtieriyi:lg assets whICh have not been

inwrport1!eti it: the Cit;ik flow estimates, 'The dj~(,:OUr.l

f::lte t";l.kulation is based on the speclfte circu:rnsthLCes of lile

Group and its op<llatJng seg:n)~nts (md derived (ff)rC it" weighted avaage (X.'St 0f.;;apilaJ (WACC), Tb: \\fACe (akw. into u.;;oount both deb, and equity. The ;;0$1 of equity is denved from dlC expected return 0:1 investmenl by the Group's investors, TJ:c Gos10( deb! is: based on l!'1e borrvwings the Gmup IS oblls.,xl to service. SC~letl·specific r.5k

IS incor;x:t4\too by applying individual bera facto:?, The betn mctors :ire eva!uat¢d annuaHy bhseci on pubJicly

aVflllab!e murked earn. Fair value ():f!nH'stmeni proputies The fuit 'la!He 0: ;nvestme!l~ properti.;:s is deltrrnlnzd b:' cxterrwl, indepzf:lde!ll property valuers, !.laving appr0priate recognised professional quabfi'::illions and recenl .:xperience H1 the localjl)n and G"-tegory 0: the

• roperty being valued,

Useful !hes of PfQPcrly, pl:mr (llld zqulpment The Group's management detennints th" estiunted useful jives Df It~ property, plan! and e.quipm;;nl fix caln:urjng depreciation, Thi5 e~tim.Jte is 6:lermind after c{insid::ring 1b,;: expeelcd usage (1f the a5sc<, '['hysical l'101t and (eas, tedmi<:al Dr com~ercia!

• bsolesccnce.

Got!lg. \.'Qncen.

ibe Group's man?,gerncnt Ui'.S made aJ: assessmeot cf the 01\'111"5 ability (0 COllllOUC liS a going conct'11l Imd is

sat!sl1ed \hat me Group :ms the resources to contmue in business for !he foreseeable fu1urc. h:e1.hennort:, .he management is no! aware oC l'.ny material Hncertainties that lr.ay CH~t signinchnt doubt tlPDfl the Group's ability 10 continue as a going umcem. Therefore, tit£' l;otlsolidatcd finilllci,,j stf!temeols comirme to be prep;.!<:d on li g0ing concern basis.

SLIDE 48

Aamal Company Q.S.c.

NOTES TO THE CONSOLIDATED FlNANC[AL STATEMENTS

For the year ended 31 December 2013

32 INCOME TAX Certain subsidiaries of the Group, which have non-GCe ownership, are subject to income tax under Qatar Income Tax Law No. 2 1 of2009. The iocome tax is charged on the share of profits attributable to non-GCe shareholders. For the purpose of these conso lidated financial statements, the income tax liability oftbe foreign shareholders has been excluded, given that the non-GCe shareholders have agreed, under the shareholder agreements signed with the Group, to bear the fhlliiability and make necessary payments.

33 COMPARATIVE INFORMATION Certain comparative figw-es of the previous year have been reclassified \0 coofonn to the current year's

• presentation. However, such reclassifications are oat materia! and do not have an impact on tbe previously

reported net profit, other comprehensive income or the total equity for the comparative year. The impact from the restatement of comparative i.nfonnalion as a resuh of adoption of IFRS I I - Joint arrangements is detailed in Note 3.2 . Changes in aCCQu(lting policies.

46