Trafco B S C : 2022 Financial Statements - 3rd Quarter (English)

Trafco Group B.S.C.

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

30 SEPTEMBER 2022 (REVIEWED)

REPORT ON THE REVIEW OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE SHAREHOLDERS OF TRAFCO GROUP B.S.C.

Introduction

We have reviewed the accompanying interim condensed consolidated financial statements of Trafco Group B.S.C. ("the Company") and its subsidiaries (together "the Group") as at 30 September 2022, comprising of the interim consolidated statement of financial position as at 30 September 2022 and the related interim consolidated statement of profit or loss and other comprehensive income for the three and nine-month periods then ended and the related interim consolidated statements of cash flows and changes in equity for the nine-month period then ended and explanatory notes. The Board of Directors of the Company is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Accounting Standard 34 ('IAS 34') "Interim Financial Reporting ". 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 IAS 34.

Auditor's Registration No. 244

7 November 2022

Manama, Kingdom of Bahrain

Trafco Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 30 September 2022 (Reviewed)

	Nine-month period ended
	30 September
	2022	2021
	BD		BD
OPERATING ACTIVITIES
Profit of the Group for the period	1,917,643	1,692,173
Adjustments for:
Investment income	(706,507)	(630,728)
Depreciation on property, plant and equipment	772,636	803,892
Depreciation on right-of-use assets	310,628	304,235
Finance costs	164,761	108,340
Other income	(231,672)	-
Finance costs on lease liabilities	147,248	89,501
Provision for employees' end of service benefits	151,628	157,643
Share of results of an associate	138,319	83,734
Provision for slow moving and obsolete of inventories	74,682	39,316
Allowance for expected credit losses	(11,474)	38,138
Gain on termination of lease agreements	-	(2,301)
Amortisation of Government grant	(3,677)	(3,029)
Gain on disposals of property, plant and equipment	(11,792)	(17,630)
Operating profit before changes in working capital	2,712,423	2,663,284
Working capital changes:
Inventories	(1,723,148)	1,054,786
Trade and other receivables	(1,072,720)	(350,605)
Trade and other payables	(474,398)	200,280
Contract and refund liabilities	64,498	119,395
Retentions	(42,073)	-
Net cash (used in) from operations	(535,418)	3,687,140
Directors' remuneration paid	(92,250)	(92,250)
Employees' end of service benefits paid	(151,343)	(230,356)
Net cash flows (used in) from operating activities	(779,011)	3,364,534
INVESTING ACTIVITIES
Purchase of property, plant and equipment	(420,510)	(638,649)
Proceeds from disposals of property, plant and equipment	22,993	25,021
Purchase of investment at fair value through other comprehensive income	(159,388)	(1,029,700)
Proceeds from disposals of investment at fair value
through other comprehensive income	14,858	697,453
Dividends and interest received	706,507	631,126
Acquisition of associate (note 6)	(850,951)	-
Short-term deposits with original maturities of more than three months	(946,985)	(3,165,085)
Net cash flows used in investing activities	(1,633,476)	(3,479,834)

Theattached notes 1 to 14 form part of these interim condensed consolidated financial statements. 4