Al Madar Finance and Investment K S C P : Financial Report

AL MADAR INVESTMENT COMPANY K.S.C.P.

AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION (UNAUDITED)

30 JUNE 2023

Ernst & Young	Tel: [phone]
Al Aiban, Al Osaimi & Partners	Fax: [phone]
P.O. Box 74	[e-mail]
18-20th Floor, Baitak Tower	ey.com/mena
Ahmed Al Jaber Street
Safat Square 13001, Kuwait

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF AL MADAR INVESTMENT COMPANY K.S.C.P.

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Al Madar Investment Company K.S.C.P. (collectively, the "Group") as at 30 June 2023, and the related interim condensed consolidated statement of profit or loss, interim condensed consolidated statement of comprehensive income for the three-month and six-month periods ended and the related interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the six-month period then ended. The 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 IAS 34 Interim Financial Reporting ("IAS 34"). 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 Financial Information Performed by the Independent Auditor of the Entity". A review of interim 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 IAS 34.

Emphasis of Matter

We draw attention to Note 7 in the interim condensed consolidated financial information which states that the Group is the ultimate beneficiary of certain investment properties with a carrying value of KD 3,958,780 (31 December 2022: KD 3,953,026 and 30 June 2022: KD 4,053,095) registered in the name of a related party on behalf of the Group. Our conclusion is not modified in respect of this matter.

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF AL MADAR INVESTMENT COMPANY K.S.C.P. (continued)

Report on Other Legal and Regulatory Matters

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, as amended, and its executive regulations, as amended, nor of the Parent Company's Articles of Association and Memorandum of Incorporation, as amended, during the six-month period ended 30 June 2023 that might have had a material effect on the business of the Parent Company or on its financial position.

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 six-month period ended 30 June 2023 that might have had a material effect on the business of the Parent Company or on its financial position.

BADER A. AL-ABDULJADER

LICENCE NO. 207 A

EY

AL AIBAN, AL OSAIMI & PARTNERS

10 August 2023

Kuwait

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Al Madar Investment Company K.S.C.P. and its Subsidiaries

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UNAUDITED)

For the period ended 30 June 2023

		Three months ended		Six months ended
	Notes	30 June		30 June
	2023	2022		2023	2022
INCOME		KD	KD		KD	KD
	148,112		287,432
Net real estate income	3	135,215	244,131
Net gain on investment securities	4	97,891	6,773	42,034	32,794
Reversal of expected credit losses		-	3,685	11,075	5,085
Consulting fee income		12,775	-	12,775	-
Other income (expenses)		228	(2,429)	24,319	2,302
		──────	──────		──────	──────
		259,006	143,244	377,635	284,312
EXPENSES		──────	──────		──────	──────
	(158,458)		(317,867)
Administrative expenses		(167,883)	(319,252)
Finance costs	11	(11,536)	(9,807)	(22,381)	(19,391)
		──────	──────		──────	──────
		(169,994)	(177,690)	(340,248)	(338,643)
		──────	──────		──────	──────
PROFIT (LOSS) BEFORE TAX		89,012	(34,446)	37,387	(54,331)
Contribution to Kuwait Foundation for		(336)	-	(336)	-
Advancement of Sciences (KFAS)
Zakat		(461)	-	(461)	-
		──────	──────		──────	──────
PROFIT (LOSS) FOR THE PERIOD		88,215	(34,446)	36,590	(54,331)
Attributable to:		══════	══════		══════	══════
	73,218		21,445
Equity holders of the Parent Company		(41,406)	(67,506)
Non-controlling interests		14,997	6,960	15,145	13,175
		──────	──────		──────	──────
		88,215	(34,446)	36,590	(54,331)
		══════	══════		══════	══════
BASIC AND DILUTED EARNINGS
(LOSS) PER SHARE ATTRIBUTABLE
TO EQUITYHOLDERS OF THE	5	0.354 Fils	(0.200) Fils		0.104 Fils	(0.326) Fils
PARENT COMPANY
		══════	══════		══════	══════

The attached notes 1 to 13 form part of this interim condensed consolidated financial information.

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Al Madar Investment Company K.S.C.P. and its Subsidiaries

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

For the period ended 30 June 2023

	Three months ended		Six months ended
	30 June		30 June
	2023	2022		2023	2022
	KD	KD		KD	KD
PROFIT (LOSS) FOR THE PERIOD	88,215	(34,446)	36,590	(54,331)
Other comprehensive income	──────	──────		──────	──────
Other comprehensive income that may be reclassified
to profit or loss in subsequent periods:
Exchange differences on translation of foreign	368		549
operations	2,292	3,056
TOTAL COMPREHENSIVE INCOME (LOSS) FOR	──────	──────		──────	──────
88,583	(32,154)	37,139	(51,275)
THE PERIOD
Attributable to:	══════	══════		══════	══════
73,491		21,854
Equity holders of the Parent Company	(39,114)	(65,214)
Non-controlling interests	15,092	6,960	15,285	13,939
	──────	──────		──────	──────
	88,583	(32,154)	37,139	(51,275)
	══════	══════		══════	══════

The attached notes 1 to 13 form part of this interim condensed consolidated financial information.

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