National Cement Public Shareholding : بيانات مالية للربع الثاني من عام 2022

National Cement Company (Public Shareholding Co.)

UNAUDITED INTERIM CONDENSED FINANCIAL STATEMENTS

30 JUNE 2022

Ernst & Young Middle East	Tel:	+971 4	701 0100
(Dubai Branch)	Fax:	+971 4	332 4004
P.O. Box 9267	[e-mail]
Ground Floor, ICD Brookfield Place	ey.com/mena
Al Mustaqbal Street
Dubai International Financial Centre
Dubai
United Arab Emirates

REPORT ON REVIEW OF INTERIM CONDENSED FINANCIAL STATEMENTS TO THE SHAREHOLDERS OF NATIONAL CEMENT COMPANY (PUBLIC SHAREHOLDING CO.)

Introduction

We have reviewed the accompanying interim condensed financial statements of National Cement Company (Public Shareholding Co.) (the "Company") as at 30 June 2022, which comprise the interim statement of financial position as at 30 June 2022, and the related interim statements of profit or loss and other comprehensive income for the three-month and six-month periods then ended, and the related interim statements of changes in equity and cash flows for the six-month period then ended, and explanatory notes. Management is responsible for the preparation and fair presentation of these interim condensed financial statements in accordance with IAS 34 International Accounting Standard (IAS 34). Our responsibility is to express a conclusion on these interim condensed 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. Consequently, it 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 Qualified Conclusion

As disclosed in Note 9 to the interim condensed financial statements, as at 30 June 2022, the Company has investment in an unquoted equity investment classified as Fair Value through Other Comprehensive Income (FVOCI) amounting to AED 41,868 thousand. We were not provided with sufficient appropriate audit evidence supporting the measurement of fair value as of the reporting date. As a result, we are unable to determine whether any adjustment to the carrying amount of the investment was necessary as at 30 June 2022.

Qualified Conclusion

Based on our review, with the exception of the matter described in the Basis for Qualified Conclusion section of our report, nothing has come to our attention that causes us to believe that the accompanying interim condensed financial statements is not prepared, in all material respects, in accordance with IAS 34, 'Interim Financial Reporting'.

For Ernst & Young

Signed by:

Ashraf Abu Sharkh

Partner

Registration No. 690

9 August 2022

Dubai, United Arab Emirates

A member firm of Ernst & Young Global Limited

National Cement Company (Public Shareholding Co.)

INTERIM STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the six months ended 30 June 2022

		Six months ended	Three months ended
		────────────────────	────────────────────
		30 June 2022	30 June 2021	30 June 2022	30 June 2021
	Notes	AED'000	AED'000	AED'000	AED'000
		(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
Revenue		68,149	73,060	29,157	27,551
Direct costs	3	(79,571)	(89,917)	(31,154)	(36,704)
		────────	────────	────────	────────
GROSS LOSS		(11,422)	(16,857)	(1,997)	(9,153)
Other operating income	4	5,700	5,385	2,449	2,713
Administration and general expenses	5	(13,810)	(10,697)	(8,210)	(5,025)
Selling and distribution expenses		(2,179)	(1,894)	(1,083)	(935)
		────────	────────	────────	────────
OPERATING LOSS		(21,711)	(24,063)	(8,841)	(12,400)
Finance income	6	11,290	12,745	6,815	6,390
Finance cost		(1,329)	(2,188)	(694)	(850)
Dividend income from equity investments	13,357	8,879	13,357	8,879
Net change in fair value of debt		(5,386)		(3,607)
instruments at FVTPL	9	8,161	3,023
Fair value of debt instruments at FVOCI		(7,149)	-	(547)	-
recycled to profit and loss on derecognition
		────────	────────	────────	────────
(LOSS)/PROFIT FOR THE PERIOD		(10,928)	3,534	6,483	5,042
		════════	════════	════════	════════
Other comprehensive (loss)/ income
Items that will not be reclassified to
profit or loss in subsequent periods:
Net change in fair value of		(78,313)		(150,358)
equity instruments at FVOCI	9	87,525	41,642
Items that may be reclassified
to profit or loss in subsequent periods:
Net change in fair value of		(3,281)		(1,030)
debt instruments at FVOCI	9	1,026	1,151
Fair value of debt instruments at FVOCI		7,149	-	547	-
recycled to profit and loss on derecognition
		────────	────────	────────	────────
Other comprehensive		(74,445)		(150,841)
(loss)/income for the period		88,551	42,793
Total comprehensive		────────	────────	────────	────────
	(85,373)		(144,358)
(loss)/income for the period		92,085	47,835
Earnings per share		════════	════════	════════	════════
Basic and diluted earnings		(0.03)		0.02
per share (AED)	18	0.01	0.01
		════════	════════	════════	════════

The attached notes 1 to 23 form part of these interim condensed financial statements.

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National Cement Company (Public Shareholding Co.)

INTERIM STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2022

					Fair value
		Share			reserve
	Share	application	Statutory	General	of financial	Retained	Total
	capital	money	reserve	reserve	assets at FVOCI	earnings	equity
	AED'000	AED'000	AED'000	AED'000	AED'000	AED'000	AED'000
Balance as at 1 January 2022 (Audited)	358,800	26	179,402	313,323	810,514	56,803	1,718,868
Loss for the period	-	-	-	-	-	(10,928)	(10,928)
Other comprehensive loss for the period	-	-	-	-	(74,445)	-	(74,445)
	────────	────────	────────	────────	────────	────────	────────
Total comprehensive loss for the period	-	-	-	-	(74,445)	(10,928)	(85,373)
	────────	────────	────────	────────	────────	────────	────────
Dividend paid (Note 23)	-	-	-	-	-	(35,880)	(35,880)
	────────	────────	────────	────────	────────	────────	────────
As at 30 June 2022 (Unaudited)	358,800	26	179,402	313,323	736,069	9,995	1,597,615
	════════	════════	════════	════════	════════	════════	════════
Balance as at 1 January 2021 (Audited)	358,800	26	179,402	313,323	497,852	7,832	1,357,235
Profit for the period	-	-	-	-	-	3,534	3,534
Other comprehensive income for the period	-	-	-	-	88,551	-	88,551
	────────	────────	────────	────────	────────	────────	────────
Total comprehensive income for the period	-	-	-	-	88,551	3,534	92,085
	────────	────────	────────	────────	────────	────────	────────
As at 30 June 2021 (Unaudited)	358,800	26	179,402	313,323	586,403	11,366	1,449,320
	════════	════════	════════	════════	════════	════════	════════

The attached notes 1 to 23 form part of these interim condensed financial statements.

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