Jordan Investment Trust P L C : Joit 31 3 2024 english

JORDAN INVESTMENT TRUST COMPANY (PUBLIC SHAREHOLDING COMPANY)

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

31 MARCH 2024

Ernst & Young Jordan

P.O. Box 1140

300 King Abdulla Street Amman 11118 Jordan

Tel:[phone] Fax:[phone]

www.ey.com

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF JORDAN INVESTMENT TRUST COMPANY

AMMAN - JORDAN

Introduction

We have reviewed the accompanying interim condensed consolidated financial statements

of JORDAN INVESTMENT TRUST COMPANY (PUBLIC SHAREHOLDING COMPANY) ("the Company")

and its subsidiaries (together "the Group") as of 31 March 2024 comprising of interim consolidated statement of financial position as of 31 March 2024 and the related interim consolidated income statement, interim consolidated statement of comprehensive income, interim consolidated statement of changes in equity, and the interim consolidated statement of cash flows for the three months period then ended and explanatory notes. Board of directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Accounting Standard Interim Financial Reporting ("IAS 34"). 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 the 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 International Accounting Standard 34.

Amman - Jordan

24 April 2024

JORDAN INVESTMENT TRUST COMPANY (PUBLIC SHAREHOLDING COMPANY)

INTERIM CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS OF 31 MARCH 2024

		31 March		31 December
	Notes	2024	2023
		JD		JD
ASSETS		(Unaudited)		(Audited)
Cash on hand and at banks		163,412	131,958
Financial assets at fair value through profit or loss		2,648,519	2,615,225
Financial assets at fair value through other		5,607,996	5,730,074
comprehensive income
Accounts receivable - net		136,546	126,258
Investment in associate	4	10,744,961	10,071,691
Other debit balances		477,248	365,973
Property and equipment		2,025,559	2,041,387
Investment properties		11,622,175		10,285,989
Total Assets		33,426,416	31,368,555
LIABILITIES AND EQUITY
Liabilities -
Loans	9	1,134,000	153,000
Brokerage customers payables		131,522	70,525
Other credit balances		1,421,006	891,155
Income tax provision		87,031		9,772
Total Liabilities		2,773,559	1,124,452
Equity -
Shareholders' equity
Paid in capital	1	27,270,078	27,270,078
Statutory reserve		1,452,237	1,452,237
Fair value reserve		399,012	502,720
Other reserves		(19,447)	(19,447)
Retained earnings (Accumulated losses)		31,510		(483,473)
Shareholders' equity		29,133,390	28,722,115
Non-controlling interests		1,519,467		1,521,988
Total Equity		30,652,857	30,244,103
Total Liabilities and Equity		33,426,416	31,368,555

The accompanying notes from 1 to 10 form part of these interim condensed consolidated financial statements

JORDAN INVESTMENT TRUST COMPANY (PUBLIC SHAREHOLDING COMPANY) INTERIM CONSOLIDATED INCOME STATEMENT

FOR THE THREE MONTHS ENDED 31 MARCH 2024 (UNAUDITED)

Revenues -

Gain from financial assets Brokerage commissions

Share of profit (loss) from associate

Gain from sale of property and equipment Other income

Net revenues

Interest and commission Administrative expenses Provision for expected credit losses Depreciation and amortization

Profit for the period before income tax

Income tax expense

Profit for the period

Attributable to:

Shareholders of the company

Non-controlling interests

Basic and diluted earnings per share from profit for the period

	31 March		31 March
Notes	2024	2023
	JD		JD
5	79,067	315,902
	2,314	8,853
4	673,270	(10,301)
	1,900	-
	67,853		59,779
	824,404	374,233
	(19,339)	(6,836)
	(177,272)	(188,429)
	(1,000)	-
	(37,430)		(36,196)
	589,363	142,772
8	(77,259)	-
	512,104	142,772
	514,625	146,130
	(2,521)		(3,358)
	512,104	142,772
	Fils/JD		Fils/JD
	0,019	0,005

The accompanying notes from 1 to 10 form part of these interim condensed consolidated financial statements

JORDAN INVESTMENT TRUST COMPANY (PUBLIC SHAREHOLDING COMPANY)

INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE THREE MONTHS ENDED 31 MARCH 2024 (UNAUDITED)

		31 March		31 March
		2024	2023
		JD		JD
Profit for the period	512,104	142,772
Add: other comprehensive income items which will
not be reclassified to profit and loss in
subsequent periods:
Change in fair value of financial assets at fair value
through other comprehensive income	(103,708)		(3,555)
Total comprehensive income for the period	408,396	139,217
Attributable to:
Shareholders of the company	410,917	142,575
Non-controlling interests	(2,521)		(3,358)
		408,396	139,217

The accompanying notes from 1 to 10 form part of these interim condensed consolidated financial statements

JORDAN INVESTMENT TRUST COMPANY (PUBLIC SHAREHOLDING COMPANY)

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE THREE MONTHS ENDED 31 MARCH 2024 (UNAUDITED)

									Retained
									earnings				Non-
	Paid in		Statutory		Other		Fair value		(Accumulated				controlling		Total
	capital		reserve		reserves		reserve		losses)		Total		interests		equity
For the three months period ended	JD		JD		JD		JD		JD		JD		JD		JD
31 March 2024 -
Balance as at 1 January 2024	27,270,078	1,452,237	(19,447)	502,720	(483,473)	28,722,115	1,521,988	30,244,103
Total comprehensive income for the
period	-	-	-	(103,350)	514,625	411,275	(2,521)	408,754
Profit from the sale of financial assets
through other comprehensive income	-	-	-	(358)	358	-	-	-
Balance as of 31 March 2024	27,270,078	1,452,237	(19,447)	399,012	31,510	29,133,390	1,519,467	30,652,857
For the three months period ended
31 March 2023 -
Balance as at 1 January 2023	27,270,078	1,452,237	(19,447)	654,166	(343,586)	29,013,448	1,531,227	30,544,675
Total comprehensive income for the
period	-	-	-	(3,555)	146,130	142,575	(3,358)	139,217
Balance as of 31 March 2023	27,270,078		1,452,237		(19,447)		650,611		(197,456)		29,156,023		1,527,869		30,683,892

The accompanying notes from 1 to 10 form part of these interim condensed consolidated financial statements

JORDAN INVESTMENT TRUST COMPANY (PUBLIC SHAREHOLDING COMPANY)

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE THREE MONTHS ENDED 31 MARCH 2024 (UNAUDITED)

		31 March			31 March
		2024	2023
OPERATING ACTIVITIES	JD			JD
Profit for the period before income tax	589,363	142,772
Adjustments -
Depreciation and amortization	37,430	36,196
Change in fair value of financial assets at fair value
through profit or loss	(33,294)	35,863
Share of loss from associate	(673,270)	10,301
Dividends from financial assets	(45,773)	(351,765)
Provision for expected credit losses	1,000	-
Bank interest	19,339	6,836
Gain from sale of Property and equipment	(1,900)	-
Profit from the sale of financial assets through other	(358)	-
comprehensive income
Changes in working capital
Financial assets at fair value through profit or loss	-	17,705
Accounts receivable and other debit balances	(122,563)	(284,658)
Accounts payable and other credit balances	590,848	(9,127)
Income tax paid	-		(490)
Net cash flows from (used in) operating activities	360,822	(396,367)
INVESTING ACTIVITIES
Proceeds from sale of property and equipment	1,900	-
Purchase of investment properties	(1,357,788)	(1,002)
Sale of financial assets at fair value through other
comprehensive income	19,086	-
Dividends of financial assets received	45,773		351,765
Net cash flows (used in) from investing activities	(1,291,029)	350,763
FINANCING ACTIVITIES
Bank loans	981,000	-
Interest paid	(19,339)		(6,836)
Net cash flows from (used in) financing activities	961,661	(6,836)
Net increase (decrease) in cash and cash equivalents	31,454	(52,440)
Cash and cash equivalents at beginning of the period	131,958		201,136
Cash and cash equivalents at end of the period		163,412		148,696

The accompanying notes from 1 to 10 form part of these interim condensed consolidated financial statements

JORDAN INVESTMENT TRUST COMPANY (PUBLIC SHAREHOLDING COMPANY) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

31 MARCH 2024 (UNAUDITED)

1. GENERAL

Jordan Investment Trust Company was incorporated in Jordan as a public shareholding company and registered on 23 April 1998 with an authorized capital of JD 20,000,000 divided into 20,000,000 shares, at a par value of 1JD each. The authorized, issued and paid-up capital was increased several times over the years to reach JD 27,270,078.

The main objectives of the Company are to invest in all available fields of investment in industrial, agricultural, financial, real estate, tourism and services sectors, and in particular to purchase and hold shares, allotments, real estate, bonds and manage investment portfolios. Other activities include, providing consulting services and capital market operations services which support and foster investment, acting as a broker in organizing the capital financing operations required for establishment, expansion and development of the companies including the undertakings of issuance of shares and bond or participate with the gatherings that aim to such undertakings.

The Company's registered office is located in Jabal Amman, Amman - The Hashemite Kingdom of Jordan.

The main objectives of the subsidiaries are to invest in all available fields of investment.

The financial statements were authorized for issuance by the Board of Directors on 24 April 2024.

The Company's shares are listed in Amman Stock Exchange.

1. BASIS OF PREPARATION AND ACCOUNTING POLICIES

(2-1)BASIS OF PREPARATION

The interim condensed consolidated financial statements as of 31 March 2024 are prepared in accordance with International Accounting Standard 34 (Interim Financial Reporting).

The interim condensed consolidated financial statements have been presented in Jordanian Dinar which is the functional currency of the Group.

The interim condensed consolidated financial statements have been prepared under the historical cost convention, except for financial assets at fair value profit and loss and financial assets at fair value through other comprehensive income which have been measured of fair value of the date of the interim condensed consolidated financial statement.

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JORDAN INVESTMENT TRUST COMPANY (PUBLIC SHAREHOLDING COMPANY) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

31 MARCH 2024 (UNAUDITED)

The interim condensed consolidated financial statements do not contain all information and disclosures required for full financial statements prepared in accordance with International Financial Reporting Standards and should be read in conjunction with the annual report of the Group as at 31 December 2023. In addition, results of the three-month period ended 31 March 2024 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2024.

(2-2) Basis of consolidation

The Group's interim condensed consolidated financial statements contain the subsidiaries and the controlled companies' financial statements, the control exists when the Group

controls the subsidiaries' significant and relevant activities, and is exposed, or has the

rights, to variable returns from its involvement with the subsidiaries, and has the ability to affect those returns. Control over the subsidiaries is exercised when the following factors exist:

• Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee).
• Exposure, or rights, to variable returns from its involvement with the investee.
• The ability to use its power over the investee to affect its returns.

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

• Contractual arrangement with other vote holders of the investee.
• Rights arising from other contractual arrangements.
• The Group's voting rights and potential voting rights.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Revenues and expenses of a subsidiary acquired or disposed of during the period are included in the interim condensed consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the Company and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group's accounting policies. All intra-group assets, liabilities, equity, revenues, expenses and profit or loss relating to transactions between members of the Group are eliminated in full.

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JORDAN INVESTMENT TRUST COMPANY (PUBLIC SHAREHOLDING COMPANY) NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

31 MARCH 2024 (UNAUDITED)

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. If the Group loses control over a subsidiary, it:

• Derecognizes the assets (including goodwill) and liabilities of the subsidiary.
• Derecognizes the carrying amount of any non-controlling interests.
• Derecognizes the cumulative translation differences recorded in equity.
• Recognizes the fair value of any amounts received.
• Recognizes the fair value of any investment retained in the subsidiary.
• Recognizes of profits or losses resulting from a loss of control.
• Reclassification of the Company's share previously recorded in other comprehensive income items to profit and loss.

(2-3)CHANGES IN ACCOUNTING POLICIES

The accounting policies used in the preparation of the interim condensed consolidated financial statements are consistent with those used in the preparation of the annual financial statements for the year ended 31 December 2023 except for the adoption of new amendments on the standards effective as of 1 January 2024 shown below:

Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7

In May 2023, the IASB issued amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures to clarify the characteristics of supplier finance arrangements and require additional disclosure of such arrangements. The disclosure requirements in the amendments are intended to assist users of financial statements in

understanding the effects of supplier finance arrangements on an entity's liabilities, cash

flows and exposure to liquidity risk.

The transition rules clarify that an entity is not required to provide the disclosures in any interim periods in the year of initial application of the amendments. Thus, the amendments had no impact on the interim condensed consolidated financial statements of the Group.

Amendments to IFRS 16: Lease Liability in a Sale and Leaseback

In September 2022, the IASB issued amendments to IFRS 16 to specify the requirements that a seller-lessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognize any amount of the gain or loss that relates to the right of use it retains.

The amendments had no material impact on the interim condensed consolidated financial statements of the Group.

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