Trafco B S C : 2023 Financial Statements - 1st Quarter (English)

Trafco Group B.S.C.

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

31 MARCH 2023 (REVIEWED)

Ernst & Young - Middle East	Tel:	[phone]
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Manama
Kingdom of Bahrain

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

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Trafco Group B.S.C. ("the Company") and its subsidiaries (together "the Group") as at 31 March 2023, comprising of the interim consolidated statement of financial position as at 31 March 2023 and the related interim consolidated statements of profit or loss and other comprehensive income, cash flows and changes in equity for the three-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

11 May 2023

Manama, Kingdom of Bahrain

A member firm of Ernst & Young Global Limited

Trafco Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 31 March 2023 (Reviewed)

	Three-month period ended
	31 March
	2023	2022
	BD		BD
OPERATING ACTIVITIES
Profit of the Group for the period	1,080,936	979,031
Adjustments for:
Investment income	(734,331)	(624,043)
Depreciation of property, plant and equipment	244,516	258,911
Depreciation of right-of-use assets	99,401	103,127
Finance costs on lease liabilities	47,766	45,893
Other finance costs	110,517	35,064
Provision for employees' end of service benefits	46,439	45,263
Share of results of an associate	-	29,295
Provision for slow moving and obsolete of inventories	17,587	15,166
Allowance for expected credit losses	32,200	23,084
Gain on disposals of property, plant and equipment	-	(5,538)
Operating profit before changes in working capital	945,031	905,253
Working capital changes:
Inventories	(198,906)	(925,526)
Trade and other receivables	(1,547,144)	(886,417)
Trade and other payables	(103,591)	(984,241)
Contract and refund liabilities	56,087	79,161
Net cash used in operations	(848,523)	(1,811,770)
Directors' remuneration paid	(102,500)	(92,250)
Employees' end of service benefits paid	(18,811)	(50,653)
Net cash flows used in operating activities	(969,834)	(1,954,673)
INVESTING ACTIVITIES
Additions to property, plant and equipment	(107,912)	(126,960)
Proceeds from disposals of property, plant and equipment	-	5,538
Purchase of investments at fair value through other comprehensive income	(22,208)	(9,989)
Proceeds from disposals of investments at fair value through
other comprehensive income	73,687	-
Dividends and interest received	325,189	296,236
Net cash flows from investing activities	268,756	164,825
FINANCING ACTIVITIES
Net movements in import loans	482,324	1,045,363
Finance costs paid	(103,020)	(29,308)
Net movements in term loans	1,163,830	(49,497)
Payment of principal portion of lease liabilities	(177,013)	(72,313)
Finance costs paid on lease liabilities	(47,766)	(45,893)
Net cash flows from financing activities	1,318,355	848,352
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	617,277	(941,496)
Foreign currency translation adjustments - net	4,258	(28,562)
Cash and cash equivalents at 1 January	3,142,708	3,398,248
CASH AND CASH EQUIVALENTS AT 31 MARCH (A)	3,764,243	2,428,190

Theattached notes 1 to 13 form part of these interim condensed consolidated financial statements. 4