Dar Al Arkan IFRS (CON) fs 31 Dec 2013.pdf · PDF filedar al arkan real estate development...
Transcript of Dar Al Arkan IFRS (CON) fs 31 Dec 2013.pdf · PDF filedar al arkan real estate development...
DAR AL ARKAN REAL ESTATE DEVELOPMENT COMPANY SAUDI JOINT STOCK COMPANY
CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED 31 DECEMBER 2013
DAR AL ARKAN REAL ESTATE DEVELOPMENT COMPANY SAUDI JOINT STOCK COMPANY
CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS REPORT FOR THE YEAR ENDED 31 DECEMBER 2013
INDEX PAGES Independent auditors report 1 2 Consolidated statement of financial position 3 Consolidated statement of comprehensive income 4 Consolidated statement of changes in shareholders equity 5 Consolidated statement of cash flows 6 Notes to the consolidated financial statements 7 29
DAR AL ARKAN REAL ESTATE DEVELOPMENT COMPANY
SAUDI JOINT STOCK COMPANY
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2013
The accompanying notes form an integral part of these consolidated financial statements
- 3 -
Notes 2013 2012
SR 000 SR 000 ASSETS
Non-current assets Investment properties, net 5 2,694,638 2,737,060 Development properties 6 15,581,373 14,868,656 Property and equipment, net 7 74,370 77,674 Investments in associates 8 747,407 744,157 Other assets 132 264
Total non-current assets 19,097,920 18,427,811
Current assets Development properties 6 971,639 891,034 Trade receivables and others 9 1,848,641 2,125,673 Cash and cash equivalents 2,279,132 535,771
Total current assets 5,099,412 3,552,478
TOTAL ASSETS 24,197,332 21,980,289
LIABILITIES AND SHAREHOLDERS EQUITY
Non-current liabilities Long-term borrowings 10 5,159,269 3,289,359
End of service indemnities 12 17,348 16,575
Total non-current liabilities 5,176,617 3,305,934
Current liabilities
Short-term borrowings 10 744,308 1,095,120
Trade payables and others 13 683,341 623,807
Current tax liabilities (Zakat) 14 600,245 644,069
Total current liabilities 2,027,894 2,362,996
Total liabilities 7,204,511 5,668,930
Shareholders Equity Share capital 15 10,800,000 10,800,000 Statutory reserve 884,914 816,768 Retained earnings 5,307,907 4,694,591
Total shareholders equity 16,992,821 16,311,359
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 24,197,332 21,980,289
DAR AL ARKAN REAL ESTATE DEVELOPMENT COMPANY SAUDI JOINT STOCK COMPANY CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2013
The accompanying notes form an integral part of these consolidated financial statements
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Notes 2013 2012
SR 000 SR 000 Revenue 2,931,168 25,,,55,3 Cost of revenue (1,778,097) (2,163,366)
GROSS PROFIT 4 1,153,071 1,393,706
General, administrative, selling and marketing expenses (151,159) (154,601)
Depreciation (5,7) (4,011) (21,197)
OPERATING PROFIT 997,901 1,217,908 Share of income from investment in associates 8 a 3,250 850
Finance costs 16 (341,481) (297,567)
Other income, net 39,320 92,776
PROFIT BEFORE ZAKAT 698,990 1,013,967
Zakat expense 14 a (17,528) (25,430)
NET PROFIT FOR THE YEAR 681,462 988,537
Other comprehensive income: Other comprehensive income for the year - - Total comprehensive income for the year 681,462 988,537
Total comprehensive income attributable to: Dar Al Arkan shareholders 681,462 988,537
Earnings per share (in Saudi Riyals)
Basic and diluted 17 0.63 0.92
DAR AL ARKAN REAL ESTATE DEVELOPMENT COMPANY SAUDI JOINT STOCK COMPANY CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY FOR THE YEAR ENDED 31 DECEMBER 2013
The accompanying notes form an integral part of these consolidated financial statements
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1. Share capital
Statutory reserve
Retained earnings
Dar Al Arkan share-
holders equity
Non-Controlling
interest Total
equity
SR 000 SR 000 SR 000 SR 000 SR 000 SR 000
2012
Balance as at 1 January 2012 10,800,000 716,768 3,806,054 15,322,822
264,741 15,587,563
Transferred/ de-consolidated - - - -
(264,741) (264,741)
Transfer to statutory reserve - 100,000 (100,000) - - -
Net profit for the year - - 988,537 988,537 - 988,537 Other comprehensive income
- - - -
- -
Total comprehensive income for the year - - 988,537 988,537 - 988,537
Balance as at 31 December 2012 10,800,000 816,768 4,694,591 16,311,359
- 16,311,359
2013
Balance as at 1 January 2013 10,800,000 816,768 4,694,591 16,311,359
- 16,311,359
Transfer to statutory reserve - 68,146 (68,146) -
- -
Net profit for the year - - 681,462 681,462
- 681,462 Other comprehensive income
- - - -
- -
Total comprehensive income for the year - - 681,462 681,462
- 681,462
Balance as at 31 December 2013 10,800,000 884,914 5,307,907 16,992,821
- 16,992,821
DAR AL ARKAN REAL ESTATE DEVELOPMENT COMPANY SAUDI JOINT STOCK COMPANY CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2013
The accompanying notes form an integral part of these consolidated financial statements
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2013 2012
SR 000 SR 000 OPERATING ACTIVITIES Profit before Zakat 698,990 1,013,967
Adjustment for: Depreciation 50,499 42,521 End of service indemnities 2,133 3,252 Finance costs 341,481 297,567
Gain on disposal of investment in associates - (56,700)
Share of profit from investment in associates (3,250) (850)
Operating cash flows before movements in working capital 1,089,853 1,299,757 Development properties (793,322) (498,585) Trade receivables and others 277,032 (391,061) Other assets 132 703 Trade payables and others 59,534 (50,114) Cash from operations 633,229 360,700 Finance costs (313,959) (264,086) Zakat paid (61,352) (5,046) End-of-service indemnities paid (1,360) (835)
NET CASH FROM OPERATING ACTIVITIES 256,558 90,733
INVESTING ACTIVITIES Investment properties (4,066) (20,843) Proceeds from disposal of investment in associates - 1,001,700 Purchase of property and equipment (707) (455) NET CASH (USED IN)/ FROM INVESTING ACTIVITIES (4,773)
980,402
FINANCING ACTIVITIES Long term borrowings 1,491,576 (3,041,138)
NET CASH FROM/(USED IN) FINANCING ACTIVITIES 1,491,576 (3,041,138)
INCREASE IN CASH AND CASH EQUIVALENTS 1,743,361 (1,970,003)
CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR 535,771 2,505,774
2,279,132
535,771 CASH AND CASH EQUIVALENTS, END OF THE YEAR
Non-cash transactions related to deconsolidation of a subsidiary (Note 8)
Development properties - 599,584
Investment in associates - (525,547)
Non-controlling Interests - (264,741)
Trade payables and others (due to related parties note 19b) - 190,704
DAR AL ARKAN REAL ESTATE DEVELOPMENT COMPANY SAUDI JOINT STOCK COMPANY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2013
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1. GENERAL INFORMATION
DAR AL ARKAN REAL ESTATE DEVELOPMENT COMPANY (the Company), is a Saudi Joint Stock Company established under the Company Laws & Regulations of The Kingdom of Saudi Arabia. The Company is registered in Riyadh under Commercial Registration No 1010160195 dated 16/04/1421H, corresponding to 18/07/2000 G. The Company is domiciled in The Kingdom of Saudi Arabia (K.S.A.) and its registered office address is P.O. Box No: 105633, Riyadh-11656, K.S.A.
The equity shares of the Company are listed with the security market of The Kingdom of Saudi Arabia.
The Company and its Subsidiaries are collectively called the Group" and is predominantly engaged in the business of development, sale and leasing of real estate projects and associated activities. The Company manages its activities through subsidiaries established for each line of business. These Subsidiaries operate under their own commercial registration and are summarised below:
DAR AL-ARKAN PROPERTIES COMPANY is a limited liability company, a wholly owned subsidiary, registered in Riyadh under the Commercial Registration No. 1010254063, dated 25/7/1429 H (corresponding to 28/7/2008 G). It operates in development and acquisition of commercial and residential real estate. It provides management, operation and maintenance of residential and commercial buildings and public facilities.
DAR AL-ARKAN PROJECTS COMPANY is a limited liability company, a wholly owned subsidiary, company registered in Riyadh under the Commercial Registration No. 1010247583, dated 28/3/1429 H (corresponding to 5/4/2008 G). It operates in general construction of residential and commercial buildings (construction, maintenance, demolition and restructuring).
DAR AL-ARKAN COMMERCIAL INVESTMENT COMPANY is a limited liability company, a wholly owned subsidiary, registered in Riyadh under the Commercial Registration No: 1010247585, dated 28/3/1429 H (corresponding to 5/4/2008 G). It operates in purchase and acquisition, lease of real estate investments.
DAR AL-ARKAN SUKUK COMPANY is a limited liability company, a wholly owned subsidiary, registered in Riyadh under the Commercial Registration No: 1010256421, dated 16/9