Inovest B S C : Q2 Financial Statement 2023

INOVEST B.S.C.

SHARI'A SUPERVISORY BOARD REPORT, INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

30 JUNE 2023 (REVIEWED)

Inovest B.S.C.

Administration and contact details as at 30 June 2023

Commercial registration number	48848 obtained on 18 June 2002
Board of Directors
Mohammad Hamed Al-Shalfan	- Chairman
Mohammad Salah Al-Ayoub	- Vice-Chairman
Abdulaziz Asaad Al-Sanad	- Director
Mohamed Abdulwahab Al Matook	- Director
Abdullah Mohammed Al-Abduljader	- Director
Dr. Abdulaziz Fahad Al Dakheel	- Director
Ausama Abdulrahim Al-Khaja	- Director
Chief Executive Officer
Yaser Hamad Al-Jar
Board Secretary
Riyadh Mahmood Mulla Ahmed
Sharia'a Supervisory Board
Sheikh Dr. Hamad Yousef Al Mazrouei	- Chairman
Sheikh Dr. Abdulrahman Mohammad Al Baloul	- Vice-Chairman
Mohammad Abdulrahman Al Shurafa	- Member
Nomination and Remuneration Committee members
Mohammed Abdulwahab Al Matook	- Chairman
Abdullah Mohammed Al-Abduljader	- Vice-Chairman
Mohammad Hamed Al-Shalfan	- Member
Corporate Governance, Audit and Risk Committee members
Ausama Abdulrahim Al-Khaja	- Chairman
Mohammad Salah Al-Ayoub	- Vice-Chairman
Abdullah Mohammed Al-Abduljader	- Member
Registered head office	35th floor, East Tower
	Bahrain Financial Harbour
	P.O. Box 18334
	Manama
	Kingdom of Bahrain
	Telephone no. [phone]
Bankers	Bahrain Islamic Bank B.S.C.
	Ithmaar Bank B.S.C.
	Kuwait Finance House (Bahrain) B.S.C. (c)
	Kuwait Finance House (Kuwait) K.S.C.P.
	Boubyan Bank (Kuwait)
	Khaleeji Commercial Bank B.S.C.
	Al Baraka Islamic Bank B.S.C. (c)
	Al Salam Bank, Bahrain B.S.C.
Auditors	Ernst & Young - Middle East
	P.O. Box 140
	10th Floor, East Tower
	Bahrain World Trade Center
	Manama, Kingdom of Bahrain
Share registrars	Bahrain Clear
	Bahrain Financial Harbour, Harbour Gate,
	Level 4, P.O.Box 3203
	Manama
	Kingdom of Bahrain
	Kuwait Clearing Company S.A.K.
	P.O. Box 22077
	Safat 13081
	State of Kuwait

In the name of Allah,The Beneficent,The Merciful

Sharia Supervisory Board Report on the activities of INOVEST Company B.S.C For the Six Months

Period Ended 30 June 2023.

All praise is due to Allah , Lord of the worlds, Prayers and Peace are upon the last messenger, our prophet Mohammed,his family and companions.

To the Shareholders of INOVEST B.S.C "the Company"，

Acting as Sharia Supervisory Board "SSB" pursuant to the appointment resolution passed by the General Assembly of the Company and SSB meeting on Thursday 3rd August 2023 in State of Kuwait, we are required to provide the following report:

The SSB has reviewed the Company's principles, contracts related transactions, and applications submitted by the Company's management for the Six months period ended 30 June 2023 , and based on the Sharia auditor presentation of the Company's activities for the abovementioned period, and comparing it with the fatwa and rulings issued.

The Company's management is responsible for ensuring that the Company conducts its business in accordance with the Islamic Shari'a Rules and principles. It is our responsibility to form an independent opinion, based on our review of the Company's operations and to report to you.

We planned and performed our review so as to obtain all the information and explanations which we considered necessary in order to provide us with sufficient evidence to give reasonable assurance that the Company has not violated Islamic Shari rules and principles.

In our opinion:

The contracts and transactions concluded by the Company during the Six Months Period Ended 30 June 2023 that we have reviewed are in compliance with the Islamic Shari'a Rules and Principles.

Also, the SSB has approved the financial statements and concluded that it's prepared in an acceptable form from Islamic Sharia view. The respective report has been prepared based on the information provided by the Company.

Prayers and Peace are upon the last messenger, our prophet Mohammed, his family and companions.

Dr. Hamad Yusuf AlMazrouie

Chairman

Dr. Abdulrahman Mohamad Al-Baloul

Vice Chairman

Dr. Mohamad Abdulrahman AlShurafa

Member

Ernst & Young - Middle East	Tel:	[phone]
P O Box 140	Fax:	[phone]
10th Floor, East Tower	[e-mail]
Bahrain World Trade Centre	C.R. No. 29977-1
Manama
Kingdom of Bahrain

REPORT ON REVIEW OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF INOVEST B.S.C.

Introduction

We have reviewed the accompanying interim consolidated statement of financial position as at 30 June 2023 of Inovest B.S.C. (the "Company") and its subsidiaries (together the "Group"), the related interim consolidated statements of income and sources and uses of charity fund for the three and six month periods then ended and the interim consolidated statements of changes in owners' equity and cash flows for the six month period then ended and explanatory notes. The Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with Financial Accounting Standard 41 Interim Financial Reporting (FAS 41). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements 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 statements are not prepared, in all material respects, in accordance with FAS 41.

6 August 2023

Manama, Kingdom of Bahrain

A member firm of Ernst & Young Global Limited

INOVEST B.S.C.

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2023 (Reviewed)

		Reviewed		Audited
		30 June		31 December
	Note	2023	2022
	US$ '000		US$ '000
ASSETS
Cash and bank balances	4	12,288	17,819
Accounts receivable	5	24,024	20,626
Investments	6	14,607	14,788
Investment in joint ventures and associates	7	93,733	93,908
Investments in real estate	8	82,887	82,045
Property, plant and equipment	9	9,709	10,009
Right of use asset	10	100	155
Other assets	11	2,020	977
TOTAL ASSETS		239,368	240,327
LIABILITIES AND OWNERS' EQUITY
Liabilities			66,990
Other liabilities and accounts payable	12	67,328
Ijarah liability		107	167
Financing from a bank		1,935	3,912
Total liabilities		69,370	71,069
Owners' Equity
		120,334
Share capital		120,334
Less: Treasury shares		(1,309)	(1,309)
		119,025	119,025
Reserves
	6,782	6,782
Retained earnings		18,590	18,029
Equity attributable to Parent`s shareholders		144,397	143,836
Non-controlling interest		25,601	25,422
Total owners' equity		169,998	169,258
TOTAL LIABILITIES AND OWNERS' EQUITY		239,368	240,327

______________________________	_____________________________
Mohamed Hamed Al-Shalfan	Mohamed Salah Al-Ayoub
Chairman	Vice Chairman

______________________________________

Yaser Hamad Al-Jar

Chief Executive Officer

The attached explanatory notes 1 to 20 form part of these interim condensed consolidated financial statements.

2