RAK Properties PJSC. Condensed interim financial statements

Transcription

1 Condensed interim financial statements Period ended 31 March 2007

2 Condensed interim financial statements Contents Page Independent report on review of condensed interim fmancial information Condensed interim income statement Condensed interim balance sheet Condensed interim statement of changes in equity Condensed interim statement of cash flows Notes to the condensed interim financial statements 6-11

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4 Condensed interim income statement for theperiod ended 31 March 2007 Note 31 March March 2006 Valuation gains on investment properties 7 and 9 78,750 Government grant 90,000 General and administrative expenses (6,588) (4,022) Results from operating activities 72,162 85,978 Gain on sale of investment 7.:J33 Net change in fair value of investments at fair value through profit and loss (2,020) (5,977) Net fmance income 25,542 2,196 Profit for the period 103,617 82,197 Earnings per share for the period (AED) The notes set out on pages 6 to 11 form part ofthese condensed interim financial statements. The independent report on review of condensed interim financial information is set out on page 1. 2

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6 Condensed interimstatementof changesin equity period ended 31 March 2007 Share Statutory Legal Retained capital reserve reserve earnings Total AED'ooO AED'Ooo At 1 January ,000,000 85,954 68,523 2,154,477 Profit for the period 82,197 82,197 At 31 March ,000,000 85, ,720 2,236,674 At 1 January ,000, ,344 47, ,117 2,559,851 Dividend payable (150,000) (150,000) Directors' remuneration (2,291) (2,291) Profit for the period 103, ,617 At 31 March ,000, ,344 47, ,443 2,511,177 The shareholders have approved a cash dividend of AED fils per share and directors' remuneration for the period ended 31 December 2006 in the annual general meeting held on 29 March The notes set out on pages 6 to 11 form part of these condensed interim fmancial statements. The independent report on review of condensed interim fmancial information is set out on page 1. 4

7 Condensed interim statement ofcash flows period ended 31 March 2007 Cash flows from operating activities: Profit for the period Adjustmentfor: Depreciation Net finance income Revaluation loss I (gain) on investments at fair value through profit and loss Gain on sale of investment Valuation gains on investment properties Government grant Loss on sale of property and equipment Change in advances and other receivables Change in trade and other payab1es Change in trading properties under development Net cash used in operating activities Cash flows from investing activities: Acquisition of property and equipment Proceeds from sale of property and equipment Interest received (net) Acquisition of investments Proceed from sale of investment Acquisition of investment properties Additions in investment properties under development Net cash used in investing activities Cash flows from financing activities: Proceeds from the issue of share capital Proceeds raised through excess funding Net cash from flnanclng activities Net (decrease) I increase in cash and cash equivalents Cash and cash equivalents Itthe beginning ofthe period Cash and cash equivalents at the end of the period 31 March 31 December , , (25,542) (125,843) 2,020 (14,273) (7.f)33) (78,750) (15,025) (352,500) 38 (6,304) (33,060) (42,545) (54,817) 51, ,257 (21,357) (125,162) (18,454) (82,782) (330) (4,461) 18 25, ,592 (36,740) (412,708) 35,480 (13,747) (22,306) (64,630) 1,397 (383,936) 2,000,000 85,954 2,085,954 (17,057) 1,619,236 1,619,236 1,602,179 1,619,236 The notes set out on pages 6 to 11 form part of these condensed interim financial statements. The independent report on review of condensed interim financial information is set out on page 1. 5

8 Notes to the condensed interim financial statements 1 Legal status and principal activities RAK Properties PJSC ("the Company") is a public joint stock company established under Emiree Decree No.5 issued by the Ruler ofthe Emirate ofras Al Khaima on 16 February 2005 and commenced its operations on 2 June The Company is listed in the Abu Dhabi Securities Market. The principal activities of the Company are investment in and development of properties, property management and related services. The registered head office of the Company is P o Box 31113, Ras AI Khaimah, DAB. 2 Statementofcompliance The condensed interim fmancial statements have been prepared in accordance with the Intemational Financial Reporting Standard ("!FRS") las 34 Interim Financial Reporting. They do not include all the information required for full annual financial statements, and should be read in conjunction with the fmancial statements of the Company as at and for the period ended 31 December Significantaccounting policies The accounting policies applied by the Company in these condensed financial statements are the same as those applied by the Company in its fmancial statements as at and for the period ended 31 December Estimates The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expense. Actual results may differ from these estimates. In preparing these condensed interim fmancial statements, the significant judgements made by the management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the fmancial statements as at and for the period ended 31 December Financialrisk management The Company's financial risk management objectives and policies are consistent with that disclosed in the fmancial statements as at and for the year ended 31 December

9 Notes to the condensed interim financial statements 6 Property and equipment Furniture and fixtures Computers and office equipment Motor vehicles Total Cost At 1 January 2007 Additions 2, , , At 31 March ,502 2, ,699 Depreciation At 1 January 2007 Charge for the period At 31 March 2007 Net carrying amount At 31 December 2006 At 31 March ,223 2, , ,759 1, ,805 7 Investment properties 31 March 31 December AED'Ooo At 1 January Acquisitions Change in fair value Fair values of government grant Transfered from trading properties under development (Note 9) Transfered to trading properties under development 193,901 13,747 53,375 15, , ,500 (187,371) 348, ,901 The amount of change in fair value of investment properties is determined based on management best estimate as at 31 March Fair valuation would be reassessed fully at the year end and adjustment would be made accordingly. 7

10 Notes to the condensed interim financial statements 8 Investment properties under development At 1 January Cost incurred Transfered from trading properties under development (Note 9) Transfered to trading properties under development 31 March ,630 22,306 35, December ,792 (125,162) 122,763 64,630 9 Trading properties under development At 1 January Cost incurred Change in fair value Transfered to investment properties under development (Note 8) Transfered to investment properties (Note 7) Transfers: Land value Development costs At 31 March 2007, a portion of trading properties under development has been transfered to investment properties and investment properties under development at the fair value at that date. In accordance with las 40 - "Investment Property" the difference of AED 25,375 thousand between the fair value of the portion transfered and its canying amount is recognised in the condensed interim income statement and included under valuation gains on investment properties. 8

11 Notes to the condensed interim financial statements 10 Investments 31 March 31 December Non current investments Private equity investments 278, ,537 Held to maturity investments 11,022 11, , ,559 Current investments Investments at fair value through profit or loss 137, ,074 Held to maturity investments 7,348 7, , ,422 Investments at fair value through profit or loss include subscription to certain equity securities in individual employee and other third parties names. The title of these investments will be transferred to the name of the Company in due course. However, the Company retains the beneficial ownership through duly executed power of attorneys supported by Board resolutions. Accordingly, these investments are included in these financial statements in order to reflect the beneficial interest of the Company. Although the Company holds more than 20 percent of the voting power in Rakeen Development (a property development company registered in the Emirate of Ras Al Khaimah), the Company currently does not have board representation to exercise significant influence on the activities of that company. Therefore, the investment is accounted for in accordance with las 39 "Financial instruments: Recognition and Measurement". 11 Cash and cash equivalents 31 March 31 December Current and call accounts 10,022 4,649 Call deposits 1,637,430 1,614,587 Bank borrowing (45,273) 1,647,452 1,619,236 1,602,179 1,619,236 The Company has obtained a short term borrowing from a commercial bank (a related party). Interest is charged at 6.45% per annum. Interest on call deposits is earned at prevailing market rate. 9

12 Notes to the condensed interim financial statements 12 Statutory reserve In accordance with the Articles of Association of the Company, 10% of the profit for each period I year is transferred to a statutory reserve until this reserve equals 50% of the paid up share capital. The statutory reserve is not available for distribution. Transfer to statutory reserve for the current year, if any, will take place at year end. Included in the statutory reserve is the balance of IPO charges of 1 fils per share collected from the shareholders after deducting incorporation cost incurred during the pre-operating period and adding interest income earned during the pre-operating period. 13 Legal reserve In accordance with Article 255 of the UAE Federal Law No.8 of 1984 (as amended) the Company is required to transfer 10% of its profit for the period to a non-distributable legal reserve until the amount of the legal reserve is equal to 500!o of the Company's issued capital. Transfer to legal reserve for the current year, ifany, will take place at year end. 14 Transactions with related parties The Company, in the ordinary course of business, enters into transactions, at agreed tenus and conditions, with other business enterprises or individuals that fall within the definition of related parties contained in International Accounting Standard 24. The Company has a related party relationship with Government of Ras AI Khaimah, its shareholders, directors and executive officers, (including business entities over which they can exercise significant influence or which can exercise significant influence over the Company). Transactions with key management personnel 31 March December 2006 Salaries and benefits 1,266 6,353 Directors' sitting fees 280 1,640 End of service benefits Directors' remuneration 2,261 3,864 8,305 Directors of the Company control 0.9 % of the voting shares of the Company. 10

13 Notes to the condensed interim financial statements 14 Transactions with related parties (continued) Other related party transactions The Government of Ras Al Khaimah has granted certain plots with an aggregate area of 57 million square feet on the condition that these lands undergo development. Out of these lands the Company did not account for 48 million square feet in these fmancial statements as the development work was not commenced on these plots of land as at 31 December Plots of land for which grant conditions have been met are recognised in these fmancial statements (refer note 7). The Company maintains call deposits with Commercial Bank International. The significant transactions I balances at the balance sheet date are as follows: 31 March 31 December Call deposits 667, ,568 Short term borrowing 45,273 Interest income on call deposits 10,279 44,515 Interest on short term borrowings Capital commitments Commitments relating to the property development are asfollows: 31 March 31 December Approved and contracted 809, , Comparative figures Certain figures have been reclassified, wherever necessary, to conform to the presentation adopted in these financial statements. Statement of cash flows for the quarter ended 31 March 2006 is not presented in these condensed interim financial statements, as previous financial year was for the period from 2 June 2005 to 31 December