r a k c p.s.c. c i f 30 2010english)_june_.2010.pdf · ras al khaimah cement company – p.s.c. ras...

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

RAS AL KHAIMAH

UNITED ARAB EMIRATES

CONDENSED INTERIM FINANCIAL

STATEMENTS AND REVIEW REPORT

FOR THE SIX-MONTH PERIOD ENDED

JUNE 30, 2010

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

RAS AL KHAIMAH


CONDENSED INTERIM FINANCIAL STATEMENTS AND REVIEW REPORT

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2010

Table of Contents

Page Exhibit

Report on Review of Condensed Interim Financial Information 1 --

Condensed Statement of Financial Position 2 A

Condensed Statement of Income 3 B

Condensed Statement of Comprehensive Income 4 C

Condensed Statement of Changes in Equity 5 D

Condensed Cash Flow Statement 6 E

Notes to the Condensed Interim Financial Statements

7 – 11 --

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


CONDENSED STATEMENT OF INCOME

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2010 (Unaudited)

EXHIBIT B

Notes For six months ended For three months ended

June 30,

2010

June 30,

2009 June 30,

2010

June 30,

2009

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

AED AED AED AED

Sales 129,223,064 163,448,261 59,008,979 65,722,379

Cost of sales (128,212,263) (107,272,580) (62,102,595) (41,015,581)

__________ __________ __________ __________

Gross profit/(loss) 1,010,801 56,175,681 (3,093,616) 24,706,798

Other income 1,637,789 1,467,085 598,241 543,433

Marketing expenses (387,507) (470,899) (206,888) (236,771)

Administrative expenses (6,170,250) (6,194,095) (2,798,571) (2,990,392)

Finance costs (189,255) (197,226) (78,004) (25,405)

Share of profit of an associate 4 2,831,779 2,591,000 1,279,517 1,977,600

Impairment of available-for-sale

investments

--

(2,260,675)

--

(2,260,675)

__________ __________ __________ __________

(Loss)/Profit for the period –

Exhibit C

(1,266,643)

51,110,871

(4,299,321)

21,714,588

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

Basic earnings per share (0.003) 0.106 (0.009) 0.045

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

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF

THESE CONDENSED INTERIM FINANCIAL STATEMENTS (UNAUDITED)

-3-



CONDENSED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX-MONTH PERIOD ENDED JUNE 30, 2010 (Unaudited)

EXHIBIT C

For six months ended For three months ended

June 30,

2010

June 30,

2009 June 30,

2010

June 30,

2009

(Unaudited) (Unaudited) (Unaudited) (Unaudited)

AED AED AED AED

(Loss)/Profit for the period – Exhibit B (1,266,643) 51,110,871 (4,299,321) 21,714,588

Other comprehensive income

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

_________ __________ __________ __________

Total Comprehensive (income)

for the period

(3,426,643)

48,710,871

(6,459,321)

21,714,588

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



-4-



CONDENSED CASH FLOW STATEMENT

FOR THE PERIOD ENDED JUNE 30, 2010 (Unaudited) EXHIBIT E

June 30,

2010

June 30,

2009

(Unaudited) (Unaudited)

Cash Flows from Operating Activities AED AED

(Loss)/Profit for the period – Exhibit B (1,266,643) 51,110,871

Adjustments for:

Depreciation 13,385,785 11,438,326

Provision for capital spare parts 127,296 117,079

End of service benefits 488,877 164,516 Interest income (1,380,457) (1,313,205)

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

Share of profit of an associate (2,831,779) (2,591,000)

Finance costs 189,255 197,226

Impairment loss in available-for-sale investment --____ 2,260,675

Profit before working capital changes 8,687,111 61,384,488

Decrease/(increase) in inventories 3,283,517 (1,821,946)

(Increase)/decrease in trade and other receivables (8,926,151) 71,272,232

(Increase) in due from an associate (3,688,117) --

Increase/(decrease) in trade and other payables 10,183,980 (38,094,250)

Net cash generated from operations 9,540,340 92,740,524

Finance costs paid (189,255) (197,226)

Net cash provided by operating activities 9,351,085 92,543,298

Cash Flows from Investing Activities

Purchase of property, plant and equipment (370,093) (2,994,905)

Disposal of capital spare parts -- 710,723

Proceeds from disposal of property, plant & equipment 41,398 --

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

Purchase of available-for-sale investment -- (1,600,000)

Interest income 1,380,457 1,313,205

Dividend received from an associate 4,000,000 --

__________ __________

Net cash provided by/(used in) investing activities 5,051,762 (42,570,977)

Cash Flows from Financing Activities

Dividend paid to shareholders (48,400,000) (53,240,000) Board of directors’ remuneration paid (2,160,000) (2,400,000)

Short-term borrowings from bank (3,725,263) (26,227,862)

Total cash (used in) financing activities (54,285,263) (81,867,862)

Net (decrease) in cash and cash equivalents (39,882,416) (31,895,541)

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

___________ _________

CASH AND CASH EQUIVALENTS AT END OF THE

PERIOD – Note 7 & Exhibit A 51,860,431 62,383,668

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



-6-



NOTES TO THE CONDENSED INTERIM FINANCIAL STATEMENTS

FOR THE PERIOD ENDED JUNE 30, 2010 (Unaudited) ________________________________________________________________________________________

1. GENERAL INFORMATION:

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

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

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

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

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

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

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

Market.

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

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

2. BASIS OF PREPARATION OF CONDENSED INTERIM FINANCIAL

STATEMENTS:

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

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

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

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

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

In preparing these condensed interim financial statements, the significant judgments

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

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

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

six months ended June 30, 2010 are not necessarily indicative of the results that may be

expected for the financial year ending December 31, 2010.

-7-




FOR THE PERIOD ENDED JUNE 30, 2010 (Unaudited) Continued…

_______________________________________________________________________________________

4. INVESTMENT IN AN ASSOCIATE:

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

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

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

capital of Reem Ready Mix LLC. Investment in an associate is accounted for

using the equity method. The details are as follows:

AED

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

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

Total acquisition cost 40,000,000

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

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

Less: dividend received (4,000,000)

Share of profit for the period 2,831,779

Balance as on June 30, 2010 (Unaudited) – Exhibit A 49,226,175

========

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

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

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

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

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

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

statement.

5. AVAILABLE-FOR-SALE INVESTMENTS:

a) The movement over these investments are as follows:

June 30,

2010

December 31,

2009

(Unaudited) (Audited)

AED AED

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

Addition during the period -- 15,534,000

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

__________ _________

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

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

b) The above investments are classified as follows:

June 30,

2010

December 31,

2009


AED AED

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

Quoted investment 63,254 63,254

Total 42,540,496 42,540,496

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

-9-





_______________________________________________________________________________________

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

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

June 30,

2010

December 31,

2009


AED AED

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

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

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

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

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

_________ _________

Total 42,540,496 42,540,496

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

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

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

6. DUE FROM AN ASSOCIATE:

Due from an associate as shown in Exhibit A amounting to AED 16,166,150

represents balance due from Reem Ready Mix LLC as of the financial statements

date.

7. CASH AND CASH EQUIVALENTS:

This item comprises of the following:

June 30,

2010

December 31,

2009


AED AED

Cash on hand 32,710 6,660

Petty cash account 34,500 34,500

Current account with bank 37,265 37,265

Dividend payment deposit account 3,514,134 1,514,135

Call deposit with bank 5,241,822 5,150,287

Fixed deposit with maturity of three months or less 43,000,000 85,000,000

_________ _________

Total – Exhibit A 51,860,431 91,742,847

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





_______________________________________________________________________________________

8. CAPITAL COMMITMENTS:

As at June 30, 2009, the Company has contractual capital commitments amounting to

AED 3,889,825 related to its ongoing projects.

9. CONTINGENT LIABILITIES:

The Company has issued corporate guarantees and letters of credit to third parties. The

details are as follows:

June 30,

2010

December 31,

2009


AED AED

Bank Letters of Credit 7,538,383 8,705,099

Bank Letters of Guarantee 60,000 60,000

10. APPROVAL OF CONDENSED INTERIM FINANCIAL STATEMENTS:

The condensed interim financial statements were approved by the Chairman of the

Board of Directors and authorized for issue on July 29, 2010.

11. GENERAL:

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

presentation adopted in these condensed interim financial statements.

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

Dirham of United Arab Emirates.

-11-

RAS A

L K

HAIM

AH C

EMENT C

OMPANY – P.S.C.

RAS A

L K

HAIM

AH

UNIT

ED A

RAB E

MIR

ATES

NOTES T

O T

HE C

ONDENSED INTERIM

FIN

ANCIA

L S

TATEMENTS

FOR T

HE P

ERIO

D E

NDED JUNE 30, 2010 (Unaudited)

Con

tin

ued…

______________________________________________________________________________________________________________________________________

3.

PROPERTY, PLANT AND EQUIPMENT:

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

Cost

Factory

building

Plant &

equipment

Mobile

equipment &

passenger cars

Office

furniture &

equipment

Land

improvements

Specialized

tools

Total

AED

AED

AED

AED

AED

AED

AED

At January 1, 2010

24,117,628

707,430,049

3,049,989

3,093,340

806,190

497,472

738,994,668

Additions

--

283,184

83,000

3,909

--

--

370,093

Disposal

--

--

(74,500)

--

--

--

(74,500)

_________

__________

_________

_________

________

________

__________

At June 30, 2010

24,117,628

707,713,233

3,058,489

3,097,249

806,190

497,472

739,290,261

Accumulated D

epreciation

At January 1, 2010

8,278,381

210,096,723

1,767,385

2,331,814

693,397

74,641

223,242,341

Charge for the period

386,477

12,558,324

229,543

148,624

62,817

--

13,385,785

Disposal

--

--

(58,325)

--

--

--

(58,325)

_________

__________

________

________

________

_______

__________

At June 30, 2010

8,664,858

222,655,047

1,938,603

2,480,438

756,214

74,641

236,569,801

Carrying Amount

At December 31, 2009 (Audited) – Exhibit A

15,839,247

497,333,326

1,282,604

761,526

112,793

422,831

515,752,327

========

=========

========

=======

========

=======

==========

At June 30, 2010 (Unaudited

) – Exhibit A

15,452,770

485,058,186

1,119,886

616,811

49,976

422,831

502,720,460

========

=========

========

=======

========

=======

==========

b) The Company's plant is constructed on a leased land renew

able on annual basis.

-8-

RAS A

L K

HAIM

AH C

EMENT C

OMPANY – P.S.C.

RAS A

L K

HAIM

AH

UNIT

ED A

RAB E

MIR

ATES

CONDENSED S

TATEMENT O

F C

HANGES IN E

QUIT

Y

FOR T

HE P

ERIO

D E

NDED JUNE 30, 2010 (Unaudited)

EXHIB

IT D

Share

capital

Reserves

Cumulative changes

in fair value of

investment in shares

Retained

earnings

Net

Description

AED

AED

AED

AED

AED

Balance at December 31, 2008 (Audited)

484,000,000

110,906,454

(266,917)

208,390,300

803,029,837

Profit for the period – Exhibit B

--

--

--

51,110,871

51,110,871

Board of directors’ remuneration paid

-- ___

-- ___

-- ___

(2,400,000)

(2,400,000)

Total comprehensive income for the period – Exhibit C

-- ___

-- ___

-- ___

48,710,871

48,710,871

Cash dividend paid

-- ___

-- ___

-- ___

(53,240,000)

(53,240,000)

Balance at June 30, 2009 (Unaudited)

484,000,000

110,906,454

(266,917)

203,861,171

798,500,708

=========

==========

=========

==========

=========

Balance at December 31, 2009 - (Audited) - Exhibit A

484,000,000

125,267,442

(266,917)

210,194,253

819,194,778

Loss for the period – Exhibit B

--

--

--

(1,266,643)

(1,266,643)

Board of directors remuneration paid

-- ___

-- ___

-- __

(2,160,000)

(2,160,000)

Total comprehensive income for the period – Exhibit C

-- .

-- .

-- .

(3,426,643)

(3,426,643)

Cash dividend paid

-- ___

-- ___

-- __

(48,400,000)

(48,400,000)

Balance at June 30, 2010 (Unaudited) – Exhibit A

484,000,000

125,267,442

(266,917)

158,367,610

767,368,135

==========

==========

=========

==========

==========

TH

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PA

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IN

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GR

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OF

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CO

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-5-

r a k c p.s.c. c i f 30 2010english)_june_.2010.pdf · ras al khaimah cement company – p.s.c. ras...

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