Al Firdous P J S C : Financial statements for the 1st QTR of 2022

AL FIRDOUS HOLDINGS (P.J.S.C.)

AND IT'S SUBSIDIARY

DUBAI - UNITED ARAB EMIRATES

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED JUNE 30, 2022

WITH REVIEW REPORT

(UNAUDITED)

AL FIRDOUS HOLDINGS (P.J.S.C.)

AND IT'S SUBSIDIARY

DUBAI - UNITED ARAB EMIRATES

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED JUNE 30, 2022

WITH REVIEW REPORT

(UNAUDITED)

Contents
Review report
	Exhibit
Interim condensed consolidated statement of financial position (Unaudited)	A
Interim condensed consolidated statement of profit or loss and other comprehensive	B
income (Unaudited)
Interim condensed consolidated statement of changes in shareholders' equity	C
(Unaudited)
Interim condensed consolidated statement of cash flows (Unaudited)	D

	Pages
Notes to the interim condensed consolidated financial information (Unaudited)	1 - 6

REVIEW REPORT

The Shareholders

Al Firdous Holdings (P.J.S.C.)

And its subsidiary

Dubai - United Arab Emirates

Review Report on the interim condensed consolidated financial information

Introduction

We have reviewed the accompanying interim condensed consolidated financial statements of Al Firdous Holdings (P.J.S.C.) (the "Company") together with its subsidiary (the "Group") as at 30 June, 2022, comprising the interim condensed consolidated statement of financial position as at 30 June, 2022, the related interim condensed consolidated statement of profit or loss and other comprehensive income, statement of changes in shareholders equity and statement of cash flows for the three month period then ended, and explanatory notes. Management is responsible for the preparation and fair presentation of these interim condensed consolidated financial statements in accordance with International Accounting Standard 34, Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on these interim condensed consolidated financial statement based on our review.

Scope of review

We conducted our review in accordance with the International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditors of the Entity".

A review of interim condensed 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.

Basis for disclaimer of conclusion

Receivable on sale of the investment portfolio

As disclosed in note 4 to the interim condensed consolidated financial statements, an amount of AED 326,789,701 (31 March, 2022: AED 326,789,701) is due from Islamic Arab Insurance Co, Labuan, Malaysia being the consideration for the sale of the Company's subsidiary, Al Firdous Group Co Ltd for Hotels, and the Company's Islamic Investing and financing assets, together referred to as the "Investment Portfolio". This amount was to be settled by 31 March, 2011 but is still outstanding as of the date of these interim condensed consolidated financial statements. Based on negotiations being held with Islamic Arad Insurance Co. Labuan, no provision has been made against this receivable as the Board of Directors consider the amount will be recovered in full on the eventual disposal of the assets by Islamic Arab Insurance Co, Labuan. However, we have not been provided with sufficient and appropriate audit evidence to support this conclusion. Accordingly, we were unable to determine the extent of provision, if any, that may be required against this receivable. The audit report on the consolidated financial statements for the year ended 31 March, 2022 was also disclaimed in respect of this matter.

Advances against the purchase of the property

As disclosed in note 5 to the interim condensed consolidated financial statements, an amount of AED 289,939,984 (31 March, 2022: AED 289,939,984) was advanced through a related party for the purchase of land in Dubai. The related party has undertaken to secure the amount of AED 289,939,984 (31 March, 2022: AED 289,939,984) by the assignment of properties to the Company with a fair value not less than an equivalent amount. However, to date, no assignment of properties has taken place and we have not been provided with sufficient and appropriate audit evidence to support the recoverability of this amount. Accordingly, we were unable to determine whether any provision may be required against the advance for the property. The audit report on the consolidated financial statements for the year ended 31 March, 2022 was also disclaimed in respect of this matter.

REVIEW REPORT (CONTINUED)

Disclaimer of conclusion

Because of the significance of the matters described in the Basis for disclaimer of conclusion paragraphs above, we are unable to express a conclusion on the interim condensed consolidated financial statements of the Group.

Emphasis of matter

We draw attention to Exhibit-C to the interim condensed consolidated financial statements. As states therein, the Group has incurred a loss of AED 290,740 for three months' period ended 30 June, 2022 (30 June, 2021: 443,450) and has accumulated losses of AED (42,747,856) as at 30 June, 2022 (31 March, 2022: 42,457,116). Notwithstanding this fact, the financial statements of the Group have been prepared on a going concern basis as management believes that the future operations of the Group will be able to support its business and meet its obligations as they fall due. The Group is ultimately supported financially by a shareholder that assumes its ability to continue as a going concern.

Other Matters

The interim condensed consolidated financial statements for the period ended 30 June, 2021 and the annual consolidated financial statements for the year ended 31 March, 2022 were reviewed and audited by another auditor, who disclaimed the review conclusion and audit opinions on August 12, 2021 and July 15, 2022 respectively, with regard to the above matters.

August 12, 2022

Dubai - U.A.E.

AL FIRDOUS HOLDINGS (P.J.S.C.)	Exhibit-A
AND IT'S SUBSIDIARY
DUBAI - UNITED ARAB EMIRATES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF JUNE 30, 2022 (UNAUDITED)

"All amounts are in U.A.E. Dirham"

			June 30,		March 31,
		2022	2022
	Notes		(Unaudited)		(Audited)
ASSETS
Current assets
Other receivables	3	255,076	326,340
Receivable on sale of the investment portfolio	4	326,789,701	326,789,701
Due from related parties	5 - a	295,722,144	295,722,144
			-----------------	-----------------
Total current assets		622,766,921	622,838,185
			-----------------	-----------------
Non - Current assets
Property, plant and equipment	6	327,370	436,507
			----------------	----------------
Total non - current assets		327,370	436,507
			-----------------	-----------------
Total assets		623,094,291	623,274,692
		=========	==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Trade payables		5,214,853	5,223,440
Other payables and provisions	7	7,337,557	7,670,499
Due to related parties	5 - b	48,182,598	47,731,545
			---------------	---------------
Total current liabilities		60,735,008	60,625,484
			---------------	---------------
Non - current liabilities
Provision for indemnity		5,879	5,064
			---------------	---------------
Total non - current liabilities		5,879	5,064
			---------------	---------------
Shareholders' equity
Share capital	8	600,000,000	600,000,000
Additional paid in capital		894,645	894,645
Statutory reserve	9	4,206,615	4,206,615
Accumulated (loss)		(42,747,856)	(42,457,116)
			-----------------	-----------------
Total shareholders' equity		562,353,404	562,644,144
			-----------------	-----------------
Total liabilities and shareholders' equity		623,094,291	623,274,692
		==========	==========

These interim financial statements were approved by the board of directors on August 12, 2022 and signed on their behalf by:

Shk. Khaled Bin Zayed Al Nahyan

Chairman

The accompanying notes form an integral part of this interim condensed financial information.