REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION
To the Board of Directors
Metal and Recycling Company K.S.C. (Public)
State of Kuwait
Introduction
We have reviewed the accompanying interim condensed consolidated statement of financial position of Metal and Recycling Company K.S.C. (Public) (the "Parent Company") and its subsidiaries (collectively the "Group") as of March 31, 2024, and the related interim condensed consolidated statement of profit or loss and other comprehensive income, statement of changes in equity, and statement of cash flows for the three months period then ended. Management of the Parent Company is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard 34, 'Interim Financial Reporting'. Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.
Scope of Review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim condensed consolidated financial Information Performed by the Independent Auditor of the Entity." A review of interim condensed consolidated financial information consists of making inquiries primarily of persons responsible for financial and accounting matters and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34.
Emphasis of matter
Without qualifying our conclusion, we draw attention to Note (10) regarding right of utilization for a land leased by the Group and held within the Associate Company.
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Report on other Legal and Regulatory Requirements
Furthermore, based on our review, the interim condensed consolidated financial information is in agreement with the books of account of the Parent Company. We further report that, to the best of our knowledge and belief, we have not become aware of any violations of the Companies Law No. 1 of 2016 and its Executive Regulations as amended, or of the Parent Company's Memorandum of Incorporation and Articles of Association as amended during the three months period ended March 31, 2024, that might have had a material effect on the Parent Company's financial position or results of its operation, except for the Group ownership of investment properties and conducting rental activities, not disclosed in the Parent Company Articles of Association.
We further report that, during the course of our review, to the best of our knowledge and belief, we have not become aware of any violations of the provisions of Law No 7 of 2010 concerning the Capital Markets Authority and its related regulations during the three months period ended March 31, 2024, that might have had a material effect on the Parent Company's financial position or results of its operations.
Dr. Shuaib A. Shuaib | |
State of Kuwait | License No. 33-A |
May 9, 2024 | RSM Albazie & Co. |
METAL AND RECYCLING COMPANY - K.S.C. (PUBLIC) AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED) AS AT MARCH 31, 2024
(All amounts are in Kuwaiti Dinars)
December 31, | |||||||
March 31, | 2023 | March 31, | |||||
ASSETS | Notes | 2024 | (Audited) | 2023 | |||
Current assets: | |||||||
Cash and cash equivalents | 3 | 811,593 | 1,173,339 | 2,498,927 | |||
Time deposits | 4 | 3,470,442 | 3,959,078 | 3,080,359 | |||
Accounts receivable and other debit balances | 5 | 8,191,305 | 7,356,191 | 4,740,804 | |||
Due from related parties | 6 | 2,400 | 124,276 | 1,900 | |||
Inventories | 107,713 | 95,477 | 109,626 | ||||
Total current assets | 12,583,453 | 12,708,361 | 10,431,616 | ||||
Non-current assets: | |||||||
Financial assets at fair value through profit and loss | 34,972 | 34,972 | 34,972 | ||||
Investment in associate | 6,796,086 | 6,796,086 | 6,797,486 | ||||
Investment property | 1,409,000 | 1,409,000 | 1,420,000 | ||||
Property, plant and equipment | 8,433,023 | 8,267,383 | 5,915,067 | ||||
Right of use assets | 1,702,113 | 1,825,483 | 2,085,981 | ||||
Goodwill | 406,889 | 406,889 | 406,889 | ||||
Total non-current assets | 18,782,083 | 18,739,813 | 16,660,395 | ||||
Total assets | 31,365,536 | 31,448,174 | 27,092,011 | ||||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Due to banks | - | 257,000 | - | ||||
Ijara payables | 690,000 | 694,058 | - | ||||
Term loans | 7 | 2,435,179 | 1,962,990 | 1,058,000 | |||
Lease liabilities | 332,752 | 570,117 | 453,221 | ||||
Accounts payable and other credit balances | 3,660,970 | 3,777,845 | 3,000,259 | ||||
Due to related parties | 6 | 4,036,514 | 3,763,675 | 3,405,025 | |||
Total current liabilities | 11,155,415 | 11,025,685 | 7,916,505 | ||||
Non-current liabilities: | |||||||
Term loans | 7 | 7,200,875 | 7,150,875 | 6,339,525 | |||
Lease liabities | 1,681,462 | 1,680,608 | 1,934,544 | ||||
Provision for end of service indemnity | 1,166,978 | 1,123,289 | 1,099,366 | ||||
Total non-current liabilities | 10,049,315 | 9,954,772 | 9,373,435 | ||||
Total liabilities | 21,204,730 | 20,980,457 | 17,289,940 | ||||
Equity: | |||||||
Share capital | 10,000,000 | 10,000,000 | 10,000,000 | ||||
Statutory reserve | 1,520,581 | 1,520,581 | 1,520,581 | ||||
Treasury shares | 8 | (1,057,640) | (1,057,640) | (1,056,623) | |||
Effect of change in subsidiary's equity | 402,450 | 402,450 | 402,450 | ||||
Accumulated losses | (3,160,634) | (3,160,760) | (3,384,594) | ||||
Equity attributable to shareholders of the Parent | |||||||
Company | 7,704,757 | 7,704,631 | 7,481,814 | ||||
Non-controlling interests | 2,456,049 | 2,763,086 | 2,320,257 | ||||
Total equity | 10,160,806 | 10,467,717 | 9,802,071 | ||||
Total liabilities and equity | 31,365,536 | 31,448,174 | 27,092,011 | ||||
The accompanying notes from (1) to (15) form an integral part of the interim condensed consolidated financial information.
Mosaed Ibrahim Al Houwly | Tarek Ibrahim Mohamed Al-Mousa | |
Chairman | Vice Chairman and Chief Executive Officer |
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METAL AND RECYCLING COMPANY - K.S.C. (PUBLIC) AND ITS SUBSIDIARIES
INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME (UNAUDITED)
FOR THE PERIOD ENDED MARCH 31, 2024 (All amounts are in Kuwaiti Dinars)
Three months ended | ||||||
March 31, | ||||||
Notes | 2024 | 2023 | ||||
Revenues: | ||||||
Net sales | 4,397 | 5,436 | ||||
Service revenue | 3,346,470 | 2,628,629 | ||||
Rental income | 393,931 | 425,466 | ||||
3,744,798 | 3,059,531 | |||||
Expenses: | ||||||
Cost of sales | (3,012) | (7,131) | ||||
Service costs | (2,397,806) | (1,945,908) | ||||
Rental costs | (265,957) | (249,003) | ||||
(2,666,775) | (2,202,042) | |||||
Gross profit | 1,078,023 | 857,489 | ||||
Staff costs | (340,564) | (246,337) | ||||
General and administrative expenses | (172,319) | (146,248) | ||||
Selling and marketing expenses | (1,142) | (2,253) | ||||
Depreciation and amortization | (291,614) | (233,414) | ||||
Allowance for expected credit losses | 5 - a | (88,348) | - | |||
Bad debts written-off | 5 - c | (4,150) | - | |||
(898,137) | (628,252) | |||||
Profit from operations | 179,886 | 229,237 | ||||
Interest income | 32,902 | 19,376 | ||||
Gain on sale of property, plant, and equipment | - | 1,000 | ||||
Finance cost | (151,692) | (181,495) | ||||
Other income | 36,787 | 27,272 | ||||
Profit for the period before contributions to the National Labor | 97,883 | 95,390 | ||||
Support Tax (NLST) and Zakat | ||||||
NLST | (3,424) | (1,607) | ||||
Contribution to Zakat | (1,370) | (643) | ||||
Profit for the period | 93,089 | 93,140 | ||||
Other comprehensive income | - | - | ||||
Total comprehensive income for the period | 93,089 | 93,140 | ||||
Attributable to: | ||||||
Shareholders of the Parent Company | 126 | 27,373 | ||||
Non-controlling interests | 92,963 | 65,767 | ||||
93,089 | 93,140 | |||||
Fils | Fils | |||||
Basic and diluted earnings per share attributable to Shareholders | ||||||
of the Parent Company | 9 | 0.001 | 0.304 |
The accompanying notes from (1) to (15) form an integral part of the interim condensed consolidated financial information.
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MRC - Metal & Recycling Company KSCP published this content on 12 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2024 05:27:08 UTC.