Oman & Emirates Investment Holding
Company SAOG
UNAUDITED CONDENSED INTERIM
CONSOLIDATED AND PARENT COMPANY
FINANCIAL STATEMENTS
30 SEPTEMBER 2009
Oman & Emirates Investment Holding Company SAOG
Unaudited Condensed Interim Consolidated and Parent Company Financial Statements
for the nine month period ended 30 Sep 2009
Contents
Review Report
Unaudited condensed interim statement of financial position
Unaudited condensed interim income statement
Unaudited condensed interim statement of comprehensive income
Unaudited condensed interim statement of cash flow
Unaudited condensed interim statement of changes in equity
Notes to the unaudited condensed interim financial statements
Page
1
2-2(a)
3
3(a)
4
5-6
7 - 31
Page 1
Review Report to the Directors of Oman & Emirates Investment
Holding Company SAOG
Introduction
We have reviewed the accompanying unaudited condensed interim statement of financial position of Oman &
Emirates Investment Holding Company SAOG (“the Parent Company”) and its subsidiaries (“the Group”) as at 30
September 2009, and the related condensed statements of comprehensive income (comprising a condensed statement
of comprehensive income and a separate condensed income statement), changes in equity and cash flows for the nine
month period then ended, and other explanatory notes (“the interim financial information”) set out on pages 2 to 31.
Management is responsible for the preparation and presentation of the interim financial information in accordance
with International Accounting Standard (“IAS”) 34, “Interim Financial Reporting” and the minimum disclosure
requirements for companies issued by the Capital Market Authority. Our responsibility is to express a conclusion on
the interim financial information 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.
Basis for qualified conclusion
As described in Notes 4 and 9 to the unaudited condensed interim consolidated financial statements, the Management
has consolidated the financial information of its subsidiaries as at and for the nine month period ended 30 September
2009 based on management accounts of those subsidiaries as at 30 September 2009 which have not been reviewed by
their independent auditors. Furthermore, the Group’s share in the results of the associated companies is calculated
based on such management accounts as at and for the nine month period ended 30 September 2009.
We were unable to obtain appropriate evidence in respect of these financial information of the subsidiaries and
associate companies included in the condensed interim consolidated financial information as at and for the nine month
period ended 30 September 2009.
Qualified conclusion
Based on our review, except for the effects of such adjustments, if any, as might have been determined to be necessary
had we been able to obtain appropriate evidence in respect of the financial information related to the subsidiary and
associate companies included in the unaudited condensed interim consolidated financial information, nothing has
come to our attention that causes us to believe that the consolidated and Parent Company interim financial information
is not:
i) prepared, in all material respects, in accordance with IAS 34 “Interim Financial Reporting”; and
ii) in compliance, in all material respects, with the minimum disclosure requirements for companies issued by the
Capital Market Authority.
10 November 2009
KPMG
Oman & Emirates Investment Holding Company SAOG
Page 2
UNAUDITED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
as at 30 Sep 2009
Group
Notes
ASSETS
Bank balances and cash
Receivables
Inventories
Trading investments
Investments available for sale
Investments in associates
Net assets held for sale
Investments in subsidiaries
Investments held to maturity
Property, plant and equipment
Intangible assets
5
8
6
7
9
4
11
TOTAL ASSETS
LIABILITIES
Bank overdrafts
Provision for bank guarantees
Accounts payable and accruals
Term loans
Loans from Governments
TOTAL LIABILITIES
NET ASSETS
5
12
13
14
30 Sep
2009
RO
3,476,415
1,329,588
300,334
17,427,820
20,585,615
11,990,550
254,521
5,216,528
70,500
----------------------------60,651,871
==========
4,161,010
2,367,234
11,584,586
18,776,000
-----------------------36,888,830
-----------------------23,763,041
==========
30 Sep
2008
RO
Parent
Audited
31 December
2008
RO
30 Sep
2009
RO
30 Sep
2008
RO
Audited
31 December
2008
RO
319,574
2,108,955
312,108
2,384,764
12,997,675
18,416,894
10,034,017
2,562,985
2,819,554
84,808
------------------------49,612,805
==========
4,545,446
4,436,653
521,518
13,924,284
15,000,000
------------------------38,427,901
------------------------11,184,904
==========
6,487,531
7,005,189
4,037,284
1,105,913
593,790
647,592
25,074,400
15,601,036
21,162,964
18,489,694
21,589,035
11,042,537
5,928,721
13,086,982
12,907,567
75,000
84,000
------------------------- ------------------------92,106,986
72,812,249
==========
==========
14,079,744
20,426,960
10,358,088
2,167,641
254,521
67,068
------------------------49,782,551
==========
328,082
2,282,515
20,662,699
20,977,019
12,994,583
3,307,203
92,194
------------------------60,644,295
==========
8,870,036
5,213,466
16,516,542
22,786,000
------------------------53,386,044
------------------------38,720,942
==========
4,102,081
405,222
11,584,586
15,000,000
------------------------31,091,889
------------------------18,690,662
==========
5,079,666
4,163,788
643,885
13,280,405
15,000,000
------------------------38,167,744
------------------------22,476,551
==========
8,536,465
3,268,386
16,942,093
22,786,000
------------------------51,532,944
------------------------21,279,305
==========
-
Oman & Emirates Investment Holding Company SAOG
Page 2 (a)
UNAUDITED CONDENSED INTERIM STATEMENT OF FINANCIAL POSITION
as at 30 Sep 2009
Group
Notes
EQUITY
Share capital
Legal reserve
Cumulative changes in fair value
Retained earnings
Total equity
Non controlling interests
TOTAL EQUITY AND NON
CONTROLLING INTERESTS
15
16
Parent
30 Sep
2009
Group
RO
30 Sep
2008
Group
RO
Audited
31 December
2008
Group
RO
30 Sep
2009
Parent
RO
30 Sep
2008
Parent
RO
Audited
31 December
2008
Parent
RO
12,187,500
2,747,324
4,089,512
3,622,017
------------------------22,646,353
1,116,688
-------------------------
12,187,500
2,747,324
2,459,604
19,355,504
------------------------36,749,932
1,971,010
-------------------------
12,187,500
2,747,324
1,915,826
3,015,026
------------------------19,865,676
1,413,629
-------------------------
12,187,500
2,500,000
4,075,286
(72,124)
------------------------18,690,662
-------------------------
12,187,500
2,500,000
2,396,240
5,392,811
------------------------22,476,551
-------------------------
12,187,500
2,500,000
1,912,056
(5,414,652)
------------------------11,184,904
-------------------------
23,763,041
38,720,942
21,279,305
18,690,662
22,476,551
11,184,904
==========
==========
==========
==========
==========
==========
These unaudited condensed interim financial statements were approved and authorised for issue in accordance with a resolution of the Directors on 10th November 2009 and
signed on their behalf by:
Mohamed Al Khouri
Vice Chairman
The notes on pages 7 to 31 form an integral part of these condensed interim financial statements.
The review report is set forth on page 1.
Awad Mohammed Faraj Bamkhalef
Chief Executive Officer
Oman & Emirates Investment Holding Company SAOG
Page 3
UNAUDITED CONDENSED INTERIM INCOME STATEMENT
for the nine month period ended 30 Sep 2009
Notes
Interest income
Brokerage commission income
Realised gain on sale of investments (net)
Realised gain on sale of subsidiary & associates (net)
Dividend income
Unrealised gain (loss) on investments held for
trading (net)
Gross loss on sale of food products
Other income
Impairment reversal
Share of profit from associates (net)
18
10(a)
21
19
10(a)
9
Jan – Sep
2009
RO
Group
Jan – Sep
2008
RO
133,448
117,968
624,521
414,410
1,336,218
108,619
711,596
1,744,631
1,502,423
66,168
36,086
332,663
24,512
2,759,968
(799,854)
143,322
451,182
(8,760,771)
(845,818)
142,751
1,199,544
2,663,107
(70,348)
73,718
(94,247)
-----------------------------------
TOTAL INCOME
5,181,183
-----------------------------------
Staff related expenses
Administration expenses
Provision for bad and doubtful debts
Impairment of investments & Goodwill
Loss from an erstwhile subsidiary (net)
Finance costs
21
20
8
22
10(a)
(1,465,825)
(1,071,531)
(646,021)
(570,714)
(53,477)
(1,139,336)
------------------------------------
TOTAL EXPENSES
NET PROFIT / (LOSS) FOR THE PERIOD
Attributable to:
Equity holders of the Parent Company
Minority Interests
(4,946,904)
21
-----------------------------------
(4,197,025)
-----------------------------------
(1,481,804)
(1,544,153)
(69)
(103,102)
(1,318,454)
Jul – Sep
2009
RO
Jan – Sep
2009
RO
Parent Company
Jan – Sep
Jul – Sep
2008
2009
RO
RO
44,563
135,305
125,999
(5,300)
98,966
89,278
5,304,147
1,556,345
69,418
1,142,813
2,305,777
16,385
41,297
24,205
23,922
91,618
778
(10,280,152)
(360,435)
87,596
(562,387)
2,198,296
50,216
993,811
-
(7,795,758)
2,359,264
-8,241
-
(8,505,350)
70,249
-
Jul - Sep
2008
RO
107,191
-
Jul – Sep
2008
RO
--------------------------------
--------------------------------
--------------------------------
--------------------------------
--------------------------------
--------------------------------
3,031,659
(10,814,811)
10,291,059
(4,170,559)
2,449,392
(8,318,783)
--------------------------------
--------------------------------
--------------------------------
--------------------------------
--------------------------------
--------------------------------
(372,258)
(349,287)
(228,967)
(303,464)
(269,234)
(574,969)
(20)
(103,102)
(448,643)
(632,509)
(378,705)
(897,208)
(1,784,455)
(490,840)
(764,814)
(678,198)
(532,637)
(233,253)
(112,386)
(652,846)
(199,346)
(98,200)
(504,904)
(319,372)
(233,753)
(174,060)
(108,935)
(154,725)
(103,102)
(221,594)
-----------------------------------
--------------------------------
--------------------------------
(4,447,582)
(1,253,976)
(1,395,968)
--------------------------------
(4,948,531)
-----------------------------------
-----------------------------------
--------------------------------
--------------------------------
234,279
(8,644,607)
1,777,683
(12,210,779)
================
================
================
================
================
606,991
(372,712)
(8,105,480)
(539,127)
1,825,632
(47,949)
(11,771,632)
(439,147)
5,342,528
-
-----------------------------------
-----------------------------------
--------------------------------
--------------------------------
234,279
(8,644,607)
1,777,683
(12,210,779)
================
================
================
================
Basic earnings per share for profit of the period
attributable to equity holders of the Parent
17
(0.067)
(0.097)
0.005
0.015
================
================
Company
========
========
The attached notes on pages 7 to 31 form part of these condensed interim financial statements. The review report is set forth on page 1.
--------------------------------
5,342,528
--------------------------------
5,342,528
================
--------------------------------
(2,209,320)
--------------------------------
--------------------------------
--------------------------------
(1,355,575)
(762,416)
--------------------------------
--------------------------------
1,093,817
(9,081,199)
================
================
================
(6,379,879)
-
1,093,817
-
(9,081,199)
-
(6,379,879)
--------------------------------
(6,379,879)
================
--------------------------------
--------------------------------
1,093,817
(9,081,199)
================
================
0.044
(0.052)
0.009
(0.075)
================
================
================
===============
Page 3(a)
Oman & Emirates Investment Holding Company SAOG
UNAUDITED CONDENSED INTERIM STATEMENT OF COMPREHENSIVE INCOME
for the nine month period ended 30 Sep 2009
Jan - Sep
2009
Notes
PROFIT / (LOSS) FOR THE PERIOD
RO
Group
Jan - Sep
Jul – Sep
2008
2009
RO
234,279 (8,644,607)
RO
Parent
Jul – Sep
2008
Jan – Sep
2009
Jan – Sep
2008
Jul – Sep
2009
Jul- Sep
2008
RO
RO
RO
RO
RO
1,777,683 (12,210,779)
5,342,528
(6,379,879)
1,093,817
(9,081,199)
OTHER COMPREHENSIVE INCOME
Available-for-sale financial assets (see page 5 and
6)
Other comprehensive information for
the period (net of tax)
Total comprehensive income for the Period
Total Comprehensive Income attributable to :
Owners of the Parent
Non controlling Interests
2,249,457
(163,124)
1,340,624
(1,242,485)
2,163,230
190,787
1,293,647
(1,277,560)
────────
──────
──────
────────
────────
────────
────────
────────
2,249,457 (163,124) 1,340,624 (1,242,485)
────────
──────
──────
──────
2,483,736 (8,807,731) 3,118,307 (13,453,264)
════════ ════════ ════════ ════════
2,163,230
────────
7,505,758
════════
190,787
────────
(6,189,092)
════════
1,293,647
────────
2,387,464
════════
(1,277,560)
────────
(10,358,759)
════════
2,780,677 (8,146,758) 3,113,507 (12,612,976)
(840,288)
(296,941) (660,973)
4,800
──────── ──────── ──────── ────────
7,505,758
────────
(6,189,092)
────────
2,387,464
────────
(10,358,759)
────────
2,483,736 (8,807,731) 3,118,307 (13,453,264)
════════ ════════ ════════ ════════
7,505,758
════════
(6,189,092)
════════
2,387,464
════════
(10,358,759)
════════
The attached notes on pages 7 to 31 form part of these condensed interim financial statements.
The review report is set forth on page 1.
Page 4
Oman & Emirates Investment Holding Company SAOG
UNAUDITED CONDENSED INTERIM STATEMENT OF CASH FLOWS
for the nine month period ended 30 Sep 2009
Group
OPERATING ACTIVITIES
Profit /(loss) before tax
Adjustments for:
Share of results of associates
Depreciation
Dividend and interest income
Realised loss/(gain) on sale of investments (net)
Unrealised gain on trading investments (net)
Impairment of investments, net of reversal
Accrual for employees end of service benefits
Provision for bad and doubtful debts, net
Bad Debt written off
Release of provision for doubtful debts
Profit on Sale of Fixed Assets
Release of provision for end of service benefits (DFICO)
Deferred Expenditure
Interest expense
Working capital changes
Receivables
Payables
Inventories
Cash generated/ (used in) operations
Interest paid
End of service benefits paid
Net cash flow (used in)/ from operating activities
INVESTING ACTIVITIES
Purchase of equipment
Proceeds from sale of property, plant and equipment
Dividend and interest received
Dividend from associates
Proceeds from sale of investments
Purchase of investments
Proceeds on sale of 60% DFICO
Net cash flow from /(used in) investing activities
FINANCING ACTIVITIES
New term loans and lease finance
Repayment of loans (net)
Settlement of Redemption proceeds
Payment of dividend
Net cash flow from/ (used in) financing activities
INCREASE/DECREASE IN CASH AND CASH
EQUIVALENTS
Cash and cash equivalents at the beginning of the period
CASH AND CASH EQUIVALENTS AT THE END
OF THE PERIOD (Note 5)
Parent
30 Sep
2009
RO
30 Sep
2009
RO
30 Sep
2008
RO
234,279
(8,644,607)
5,342,528
(6,379,879)
(451,181)
746,872
(1,469,666)
(1,038,931)
(2,759,968)
570,715
37,250
421,318
(119,021)
(39,733)
13,500
1,139,336
────────
(2,715,230)
(1,199,544)
840,077
(1,611,043)
(1,744,631)
8,760,771
103,102
86,755
69
(50,266)
(64)
1,318,454
────────
(2,140,927)
24,386
(1,655,311)
(5,393,425)
(2,198,296)
790,644
15,459
897,208
490,839
764,814
────────
(921,154)
24,785
(2,375,196)
(1,142,813)
7,795,759
112,385
41,404
233,253
(64)
652,846
────────
(1,037,520)
(243,822)
(491,003)
202,280
────────
(3,247,775)
(1,139,336)
(28,923)
────────
(4,416,034)
────────
6,344,585
(1,847,624)
242,674
────────
2,598,708
(1,318,454)
(12,549)
────────
1,267,705
────────
(3,131,174)
(128,435)
───────
(4,180,763)
(764,814)
(3,319)
────────
(4,948,896)
────────
3,086,044
(298,013)
───────
1,750,511
(652,846)
(6,697)
────────
1,090,968
────────
(59,620)
7,521
1,469,666
358,295
9,989,190
(3,017,240)
1,885,946
────────
10,633,758
────────
(395,323)
292
1,611,043
717,554
19,604,843
(23,754,864)
────────
(2,216,455)
────────
(6,645)
1,297,016
358,295
9,357,833
(849,357)
────────
10,157,142
────────
(44,961)
292
2,375,196
14,106,001
(19,043,233)
────────
(2,606,705)
────────
(5,357,507)
(10,000)
(3,536)
────────
(5,371,043)
────────
3,090,274
(31,337)
(1,901,120)
────────
1,157,817
────────
(4,757,415)
───────
(4,757,415)
────────
3,032,204
(1,875,000)
───────
1,157,204
────────
846,681
209,067
450,831
(358,533)
(1,531,276)
────────
(2,591,572)
────────
(4,233,338)
────────
(4,393,051)
────────
684,595
════════
(2,382,505)
════════
(3,782,507)
════════
(4,751,584)
════════
The attached notes 7 to 31 form part of these condensed interim financial statements.
The review report is set forth on page 1.
30 Sep
2008
RO
Page 5
Oman & Emirates Investment Holding Company SAOG
UNDAUDITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
for the nine month period ended 30 Sep 2009
Group
At 1 January 2008
Total comprehensive income
Payment of dividend for the year 2007
Stock Dividend for 2005
Stock Dividend for 2007
Redemption of units
At 30 September 2008
At 1 January 2009
Total comprehensive income
At 30 September 2009
Attributable to equity holders of the Parent Company
Share
Capital
RO
Legal
reserve
RO
7,500,000
1,875,000
2,812,500
----------------------12,187,500
═══════
12,187,500
----------------------12,187,500
═══════
2,747,324
-----------------------2,747,324
════════
2,747,324
-----------------------2,747,324
════════
Cumulative
changes
in fair value
RO
2,622,728
(163,124)
-----------------------2,459,604
════════
1,915,826
2,173,686
-----------------------4,089,512
════════
The attached notes on pages 7 to 31 form part of these condensed interim financial statements.
The review report is set forth on page 1.
Retained
earnings
RO
34,023,484
(8,105,480)
(1,875,000)
(1,875,000)
(2,812,500)
-----------------------19,355,504
════════
3,015,026
606,991
-----------------------3,622,017
════════
Total
RO
Non
controlling
interests
Total
equity
RO
RO
46,893,536
2,689,440
(8,268,604)
(660,973)
(1,875,000)
(26,120)
(31,337)
------------------------ -----------------------36,749,932
1,971,010
════════ ════════
19,865,676
1,413,629
2,780,677
(296,941)
------------------------ -----------------------22,646,353
1,116,688
════════ ════════
49,582,976
(8,929,577)
(1,901,120)
(31,337)
-----------------------38,720,942
════════
21,279,305
2,483,736
-----------------------23,763,041
════════
Page 6
Oman & Emirates Investment Holding Company SAOG
UNAUDITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
for the nine month period ended 30 Sep 2009
Parent Company
At 1 January 2008
Total comprehensive income
Stock dividend for 2005 at 25 %
Stock Dividend for 2007
Cash Dividend for 2007
At 30 September 2008
At 1 January 2009
Total comprehensive income
At 30 September 2009
Attributable to equity holders of the Parent Company
Share
capital
RO
Legal
reserve
RO
Cumulative
changes in
fair value
RO
7,500,000
1,875,000
2,812,500
-----------------------12,187,500
════════
12,187,500
-----------------------12,187,500
════════
2,500,000
-----------------------2,500,000
════════
2,500,000
-----------------------2,500,000
════════
2,205,453
190,787
-----------------------2,396,240
════════
1,912,056
2,163,230
-----------------------4,075,286
════════
The attached notes on pages 7 to 31 form part of these condensed interim financial statements.
The review report is set forth on page 1.
Retained
earnings
RO
18,335,190
(6,379,879)
(1,875,000)
(2,812,500)
(1,875,000)
-----------------------5,392,811
════════
(5,414,652)
5,342,528
-----------------------(72,124)
════════
Total
RO
30,540,643
(6,189,092)
(1,875,000)
-----------------------22,476,551
════════
11,184,904
7,505,758
-----------------------18,690,662
════════
Page 7
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
1
REPORTING ENTITY
Oman & Emirates Investment Holding Company SAOG (“the Parent Company”) is registered as an Omani
joint stock company. It is engaged in investment activities and related services in accordance with Royal
Decree No. 10/93 and its Articles of Association. The Parent Company is licensed to carry out financial
investment activities through its branch in the United Arab Emirates (the UAE) by the Central Bank of the
UAE. The Parent Company’s registered head office address is at PO Box 2205, Ruwi, Postal Code 112,
Sultanate of Oman. Oman & Emirates Investment Holding Company SAOG and its subsidiaries (“the
Group”) operate in the Sultanate of Oman and the UAE.
2
STATEMENT OF COMPLIANCE AND BASIS OF PREPARATION
The unaudited condensed interim consolidated and Parent Company financial statements have been
prepared in accordance with the International Financial Reporting Standards (IFRS), International
Accounting Standard (IAS) 34 “Interim Financial Reporting”, and the minimum disclosure requirements of
the Capital Market Authority of the Sultanate of Oman and comply, in all material respects with the
Commercial Companies Law of 1974, as amended. They do not include all the information required for
full annual financial statements, and should be read in conjunction with the full audited financial
statements of the Parent Company and the Group as at and for the year ended 31 December 2008.
The Group and Parent Company have adopted the following new IAS/IFRS as of 1 January 2009:
1.
IAS 1 (Revised) - Presentation of financial statements:
The revised IAS 1 was issued by the IASB in September 2007. IAS 1 (Revised) mandates the presentation
of the income (expenses) recognised directly in equity to be shown in a separate statement "Other
Comprehensive Income". The Parent Company and the Group opted to present a condensed statement of
comprehensive income and a separate condensed income statement.
2.
IFRS 8 - Operating Segments.
The IASB issued IFRS 8 in November 2006. IFRS 8 replaces IAS 14 Segment Reporting (IAS 14) upon its
effective date.The Group concluded that the segments determined in accordance with IFRS 8 are the same
as the business segments previously identified under IAS 14. Accordingly, the adoption of IFRS 8 has had
no significant impact on these condensed interim financial statements. IFRS 8 disclosures are shown in
note 26 to the consolidated interim financial statements.
The adoption of these standards did not have any effect on the financial performance or position of the
Group and Parent Company. They did however give rise to additional disclosures.
The condensed interim financial statements have been presented in Rial Omani, which is the Parent
Company and Group’s functional currency.
3
SIGNIFICANT ACCOUNTING POLICIES
The accounting policies applied by the Group in the Condensed interim financial information are the same
as those applied by the Group in its financial statements as at and for the year ended 31 December 2008
except for IAS1 revised and IFRS 8.
Page
8
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
4
INVESTMENTS IN SUBSIDIARIES
The consolidated condensed interim financial statements include the financial statements of the Parent Company and the subsidiaries listed in the following table:
30 Sep
2008
Cost
RO
30 Sep
2009
Percentage
held
%
31 December
2008
Cost
RO
30 Sep
2008
Percentage
held
%
Cost
RO
31 December
2008
Percentage
held
%
1,570,500
50.00
1,570,500
50.00
1,570,500
50.00
1,412,059
90.92
1,412,059
90.83
1,412,059
90.89
324,644
100.00
324,644
100.00
324,644
100.00
1,913,251
65.80
1,913,251
65.80
1,913,251
65.80
-
-
2,517,812
99.13
2,517,812
99.13
30 Sep
2009
Company name
Activity
United Brokerage Company LLC, UAE
Financial
services
Financial
services
Breeding of
Goats
Manufacture of
baby food
Majan Special Opportunities JIA
Omani Pedigree Goat Breeding Co LLC
Omani Euro Food Industries Co SAOG
Dhofar Fisheries Industries Co SAOG
(see note 10(a))
Total cost
Less: Impairment losses
Fish Processing
---------------------5,220,454
---------------------7,738,266
----------------------7,738,266
(3,052,813)
----------------------2,167,641
=========
(4,431,063)
----------------------3,307,203
=========
(4,918,712)
----------------------2,819,554
=========
The condensed interim consolidated financial information as at and for the nine month period ended 30 Sep 2009, include unreviewed financial information of the above
subsidiaries.
During the nine months ended 30 Sep 2009, the Parent Company has provided impairment of investment relating to United Brokerage Company LLC for RO 327,269 and
Omani Pedigree Goat Breeding Company LLC for RO 324, 644. The cumulative impairment losses amounting to RO 3,052,813 include RO 814,918 for United Brokerage
Company, RO 324,644 for Omani Pedigree Goat Breeding Co, and RO 1,913,251 for Omani Euro Food Industries.
Page
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
5
CASH AND CASH EQUIVALENTS
Cash and cash equivalents included in the statement of cash flows comprise the following balance sheet amounts:
Bank balances and cash
Bank overdrafts
30 Sep
2009
Group
RO
30 Sep
2008
Group
RO
31 December
2008
Group
RO
30 Sep
2009
Parent
RO
30 Sep
2008
Parent
RO
31 December
2008
Parent
RO
3,476,415
(4,161,010)
────────
(684,595)
═══════
6,487,531
(8,870,036)
────────
(2,382,505)
═══════
7,005,189
(8,536,465)
────────
(1,531,276)
═══════
319,574
(4,102,081)
────────
(3,782,507)
═══════
328,082
(5,079,666)
────────
(4,751,584)
═══════
312,108
(4,545,446)
────────
(4,233,338)
═══════
9
Page
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
6
TRADING INVESTMENTS
Group
Local quoted investments:
Banking and investment sector
Manufacturing sector
Services and other sectors
Overseas quoted investments:
Banking and investment sector
Services and other sectors
Industrial
Total
30 Sep
2009
Carrying
Value
RO
30 Sep
2009
Original
Cost
RO
30 Sep
2008
Carrying
Value
RO
30 Sep
2008
Original
Cost
RO
31 December
2008
Carrying
Value
RO
31 December
2008
Original
Cost
RO
12,256,424
988,204
1,756,858
───────
15,001,486
───────
9,607,369
872,069
2,065,547
──────
12,544,985
───────
16,493,711
2,041,871
3,508,720
───────
22,044,302
───────
11,579,412
2,154,321
3,466,642
───────
17,200,375
───────
11,039,835
1,169,437
1,526,631
───────
13,735,903
───────
11,463,119
1,907,493
2,632,140
───────
16,002,752
───────
1,277,929
1,148,405
───────
2,426,334
───────
17,427,820
═══════
916,151
840,893
───────
1,757,044
───────
14,302,029
═══════
1,625,739
16,253
1,388,106
───────
3,030,098
───────
25,074,400
═══════
935,448
22,908
840,893
───────
1,799,249
───────
18,999,624
═══════
812,112
1,042,322
10,699
───────
1,865,133
───────
15,601,036
═══════
916,151
840,892
22,908
───────
1,779,951
───────
17,782,703
═══════
Investments aggregating RO 11,114,132 are pledged to commercial banks as security against credit facilities.
10
Page
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
6
TRADING INVESTMENTS (continued)
Parent
30 Sep
2009
Carrying
Value
RO
Local quoted investments:
Banking and investment sector
Manufacturing sector
Services and other sectors
Overseas quoted investments:
Banking and investment sector
Services and other sectors
Total
30 Sep
2009
Original
Cost
RO
30 Sep
2008
Carrying
Value
RO
30 Sep
2008
Original
Cost
RO
31 December
2008
Carrying
Value
RO
31 December
2008
Original
Cost
RO
10,830,537
514,578
651,282
───────
11,996,397
───────
8,438,909
535,884
1,017,653
───────
9,992,446
───────
14,614,738
1,196,652
2,298,983
───────
18,110,373
───────
9,002,232
1,192,622
2,281,597
───────
12,476,451
───────
9,960,585
760,003
656,667
───────
11,377,255
───────
8,985,525
1,157,452
1,392,062
───────
11,535,039
───────
1,034,815
1,048,532
───────
2,083,347
───────
14,079,744
═══════
664,972
765,371
───────
1,430,343
───────
11,422,789
═══════
1,293,687
1,258,639
───────
2,552,326
───────
20,662,699
═══════
664,972
765,371
───────
1,430,343
───────
13,906,794
═══════
645,403
975,017
───────
1,620,420
───────
12,997,675
═══════
664,972
765,371
───────
1,430,343
───────
12,965,382
═══════
Investments aggregating RO 10,752,948 are pledged to commercial banks as security against credit facilities.
11
Page
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
7 AVAILABLE FOR SALE INVESTMENTS
Group
30 Sep 2009
Carrying
Value
RO
Local quoted investments:
Banking and investment sector
Manufacturing sector
Services and other sectors
Overseas quoted investments:
Banking and investment sector
Services and other sectors
Local unquoted investments:
Banking and investment sector
Service
Industrial
Overseas unquoted investments:
Banking and investment sector
Industrial
Service
30 Sep
2009
Original
Cost
RO
30 Sep
2008
Carrying
Value
RO
30 Sep
2008
Original
Cost
RO
31 December
2008
Carrying
Value
RO
31 December
2008
Original
Cost
RO
455,250
5,792,240
2,545,351
───────
8,792,841
───── ─
617,849
4,281,384
2,642,990
───────
7,542,223
───────
754,534
5,828,226
2,733,108
───────
9,315,868
───────
812,955
4,236,655
2,650,616
───────
7,700,226
───────
625,034
4,394,692
2,251,196
───────
7,270,922
───────
813,990
4,236,656
2,650,616
───────
7,701,262
───────
446,580
610,516
───────
1,057,096
───────
123,630
130,380
───────
254,010
───────
596,790
830,671
───────
1,427,461
───────
54,968
199,042
───────
254,010
───────
292,637
709,723
───────
1,002,360
───────
54,968
199,042
───────
254,010
───────
494,127
3,978,740
2,025,253
───────
6,498,120
───────
849,750
3,978,740
2,025,253
───────
6,853,743
───────
458,400
3,978,740
1,744,937
───────
6,182,077
──────
657,000
3,978,740
1,744,937
───────
6,380,677
───────
255,177
3,978,740
1,744,937
───────
5,978,854
──────
657,000
3,978,740
1,744,937
───────
6,380,677
───────
533,970
533,970
533,970
533,970
533,970
533,970
213,588
213,588
213,588
213,588
213,588
213,588
3,490,000
3,490,000
3,490,000
3,490,000
3,490,000
3,490,000
───────
─────── ───────
───────
───────
───────
4,237,558
4,237,558
4,237,558
4,237,558
4,237,558
4,237,558
───────
─────── ───────
───────
───────
───────
Total
21,162,964
18,572,471
18,489,694
18,573,507
20,585,615
18,887,534
═══════
═══════ ═══════
═══════
═══════
═══════
Investments aggregating RO 7,212,620 are pledged to commercial banks as security against credit facilities.
Unquoted available for sale investments in the amount of RO 10,444,551 are carried at cost, as the Board of Directors considers this approximate to fair value.
12
Page
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
7
AVAILABLE FOR SALE INVESTMENTS (continued)
Parent
Local quoted investments:
Banking and investment sector
Manufacturing sector
Services and other sectors
Overseas quoted investments:
Banking and investment sector
Services and other sectors
Local unquoted investments:
Banking and investment sector
Service
Industrial
Overseas unquoted investment
Banking and investment sector
Industrial
Service
30 Sep
2008
Original
Cost
RO
31 December
2008
Carrying
Value
RO
31 December
2008
Original
Cost
RO
738,078
5,828,225
2,733,109
───────
9,299,412
───────
810,599
4,236,655
2,650,616
──────
7,697,870
──────
614,730
4,394,692
2,251,196
───────
7,260,618
───────
810,599
4,236,656
2,650,616
───────
7,697,871
───────
54,968
130,380
───────
185,348
───────
596,790
661,182
──────
1,257,972
──────
54,968
130,380
──────
185,348
──────
292,637
647,227
───────
939,864
───────
54,968
130,380
───────
185,348
───────
849,750
3,978,740
2,025,253
───────
6,853,743
───────
458,400
3,978,740
1,744,937
──────
6,182,077
──────
657,000
3,978,740
1,744,937
──────
6,380,677
──────
255,177
3,978,740
1,744,937
───────
5,978,854
──────
657,000
3,978,740
1,744,937
───────
6,380,677
───────
30 Sep
2009
Carrying
Value
RO
30 Sep
2009
Original
Cost
RO
455,250
5,792,240
2,545,351
───────
8,792,841
───── ─
617,849
4,281,384
2,642,990
───────
7,542,223
───────
287,925
610,516
───────
898,441
───────
494,127
3,978,740
2,025,253
───────
6,498,120
───────
30 Sep
2008
Carrying
Value
RO
533,970
533,970
533,970
533,970
533,970
533,970
213,588
213,588
213,588
213,588
213,588
213,588
3,490,000
3,490,000
3,490,000
3,490,000
3,490,000
3,490,000
───────
───────
──────
────── ───────
───────
4,237,558
4,237,558
4,237,558
4,237,558
4,237,558
4,237,558
───────
───────
──────
────── ───────
───────
Total
20,977,019
18,501,453
18,416,894
18,501,454
20,426,960
18,818,872
═══════
═══════
═══════
═══════ ═══════
═══════
Investments aggregating RO 7,212,620 are pledged to commercial banks as security against credit facilities.
Unquoted available for sale investments in the amount of RO 10,444,551 are carried at cost, as the Board of Directors considers this approximate to fair value.
13
Page
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
8
RECEIVABLES
30 Sep
2009
Group
RO
30 Sep
2008
Group
RO
31 December
2008
Group
RO
30 Sep
2009
Parent
RO
30 Sep
2008
Parent
RO
31 December
2008
Parent
RO
Amounts due from related parties
Trade receivables
Shareholders Loan
724,746
344,232
105,000
61,241
2,858,712
171,180
33,114
463,205
171,180
2,363,174
105,000
2,929,276
48,379
171,180
4,271,005
171,180
Other receivables
552,305
1,075,125
453,238
512,720
974,580
181,927
Prepaid expenses
160,420
───────
1,886,703
(557,115)
───────
1,329,588
══════
233,334
───────
4,399,592
(362,308)
───────
4,037,284
══════
239,992
───────
1,360,729
(254,816)
───────
1,105,913
══════
40,158
───────
3,021,052
(912,097)
───────
2,108,955
══════
35,141
───────
4,158,556
(1,876,041)
───────
2,282,515
══════
28,549
───────
4,652,661
(2,267,897)
───────
2,384,764
══════
Provision for impairment in value
The movement in provision for impairment in value is analysed as follows:
1 January
Provision charged during the year / period
Transfer from provision for bank guarantees
Write back of provision no longer required
Written off during the year
Transfer relating to Dhofar Fisheries (see
note 10(a))
30 Sep / December
254,816
646,021
-
412,505
69
-
412,504
15,463
-
2,267,897
897,208
-
1,256,539
233,253
386,249
1,256,539
469,136
592,500
-
-
(1,898)
(2,253,008)
-
(1,898)
(119,019)
(50,266)
(171,253)
-
-
(48,380)
(224,703)
───────
557,115
══════
───────
362,308
══════
───────
254,816
══════
───────
912,097
══════
───────
1,876,041
═══════
───────
2,267,897
══════
14
Page 15
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
9 INVESTMENTS IN ASSOCIATES
Associate
Holding
30 Sep
2009
(%)
Carrying
value
30 Sep
2009
RO
Cost
30 Sep
2009
RO
Share of
results
Holding
30 Sep
2009
RO
30 Sep
2008
(%)
Carrying
value
Cost
30 Sep 2008 30 Sep 2008
RO
RO
Share of
results
Holding
Carrying
value
Cost
Share of
results
30 Sep
2008
RO
31 Dec
2008
(%)
31 December
2008
RO
31 Dec
2008
RO
31 Dec
2008
RO
Emirates Ship Investment Co LLC
(see note 10(b))
-
-
-
34
9,894,166
2,960,566
460,034
34
5,928,721
2,960,566
(3,107,830)
(808,281)
The Financial Corporation SAOG
(Activity – Financial services)
37
4,526,049
3,885,454
564,428
37
4,835,027
3,885,454
31,912
37
3,994,834
3,885,454
Oman Hotels and Tourism Co SAOG
(Activity – Hospitality services)
31
6,157,988
5,168,563
340,854
31
5,981,974
5,168,563
809,730
31
6,175,429
5,168,563
1,003,186
Oman Medical Projects Co SAOG
(Acitivity – Medical Services)
38
-
3,012,941
-
38
-
3,012,941
-
38
-
3,012,941
-
Horizon Technologies Co SAOC
(Activity - PET Recycling)
20
454,331
980,000
(310,030)
20
877,868
980,000
(102,132)
20
872,274
980,000
(107,726)
39
852,182
993,811
(144,070)
-
-
-
-
-
-
-
(3,682,681)
-
-
(3,012,941)
-
-
-
-
Dhofar Fisheries Industries Co SAOG
(Activity – Fish Canning)
[see note 10(a)]
Less: Impairment of investment
Less: Reclassified as Investment
held for sale
--------------------------- ---------------------------- ---------------------11,990,550 10,358,088
=========
==========
---------------------------
-
-
-
-
------------------------------ ------------------------
(3,410,522)
-
(5,928,721)
(2,562,985)
-
---------------------------
---------------------------
-------------------------
451,182
21,589,035
12,994,583 1,199,544
11,042,537
10,034,017
(3,020,651)
========
==========
=========== ========
==========
==========
=========
The management accounts, unreviewed by auditors of these companies, have been used for the valuation of investments in associates and share of results of associates. The investment in
Oman Medical Projects Co SAOG was carried at nil value as the investment of RO 3,012,941 was considered as fully impaired. The Parent Company’s share of unabsorbed losses in this
company amounted to RO 567,668, as at 30 Sep 2009 and the same was not recognized in the statement of income. During Jan - Sep 2009, the Parent Company has provided an impairment
of goodwill of RO 107,913 and impairment of investments of RO 417,756 relating to Horizon Technologies Co. The cumulative impairment aggregating to RO 3,682,681 includes RO
3,012,941 for Oman Medical Projects Company, RO 525,669 relating to Horizon Technologies Company and RO 144,071 relating to Dhofar Fishries.
Investments aggregating to RO 11,644,950 (30 Sep 2008 – RO 12,781,007) are pledged to commercial banks as security against credit facilities.
The market value of holdings in FINCORP (SAOG) is RO 5,941,262, Oman Hotels and Tourism Company SAOG is RO 5,732,494, Oman Medical Projects Co SAOG is RO 2,105,871 and
Dhofar Fisheries Industries Co SAOG is RO 1,194,344.
16
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
10
SALE OF INVESTMENTS IN ASSOCIATES AND SUBSIDIARIES:
(a) Dhofar Fisheries Company SAOG:
During June 2009, the Parent Company has sold 60% out of 99.13% equity stake held in Dhofar Fisheries
Industries Co SAOG (DFICO) to a new investor for a sale consideration of RO 1.950 Million based on an 100%
equity valuation of RO 3.25 Million, for a net equity position of RO 2.540 Million (equivalent to the share capital
of RO 2.540 Million) after clearing out all the accumulated losses and bank liabilities by the Parent Company on
30 June 2009, being the effective date of completion.
The Balance Sheet of DFICO as at 30 June 2009 before and after clearing accumulated losses and bank
liabilities, is as under:
Before
Taken over by
Retained
Transfer
Parent Company
at DFICO
A. Assets:
Fixed Assets
6,996,270
6,996,270
Investments, net of reserve
3,391
3,391
Current Assets
238,047
238,047
---------------------------------------------------------------Total of Assets
7,237,708
7,237,708
---------------------------------------------------------------B. Liabilities:
Accounts Payables and accruals
378,744
378,744
Government Soft Loan
4,000,000
4,000,000
Dues to OEIHC
5,081,747
(4,762,783)
318,964
Loans from Banks
2,417,717
(2,417,717)
---------------------------------------------------------------Total of Liabilities
11,878,208
(7,180,500)
4,697,708
---------------------------------------------------------------Net Assets (A - B)
(4,640,500)
(7,180,500)
2,540,000
=========
=========
=========
Represented by:
Share Capital
2,540,000
2,540,000
Accumulated Losses
(7,180,500)
(7,180,500)
---------------------------------------------------------------Total
(4,640,500)
(7,180,500)
2,540,000
=========
=========
=========
Consequent to this transfer, Parent Company’s holding has been reduced from 99.13% to 39.13% (993,811)
shares and hence the investment has been classified as an ‘Associate investment’ from a subsidiary investment as
at 30 September 2009. After adjustments of the accumulated losses in DFICO, the Parent Company’s holding has
been carried at RO 993,811 equivalent to the face value and the impact of the impairment of investment made in
earlier years amounting to RO 993,811 relating to this holding has been reversed to the statement of income.
The disinvestment of 60% equity stake in DFICO has resulted in a gain of RO 1,942,203 for the Parent Company
and RO 418,203 for the Group. The Parent Company has absorbed the loss of DFICO up to 30 June 2009
amounting to RO 7,180,500 (including RO 53,477 relating to Minority Interest) and reversed an amount of RO
6,689,660 being the provision towards guarantees of RO 4,436,653 and doubtful bridge loan dues of RO
2,253,007 created earlier. The balance of RO 490,840 is shown as loss from an erstwhile subsidiary by the Parent
Company.
(b) Emirates Ship Investments Company LLC:
During March 2009, the Parent Company has sold its entire holding of 34.22% in favour of the other
shareholders of Emirates Ship Investment Co LLC for a sale consideration of RO 5,928,721 (USD 15.4 Million)
based on an enterprise valuation of USD 45 Million, as against the original cost of investment at RO 2,562,985
and a gain of RO 3,361,944 was recognised in the financial statements of the Parent Company and net loss of RO
3,793 in the Group.
Page 17
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
11
PROPERTY, PLANT AND EQUIPMENT
Plant and
machinery
RO
Furniture
and
fixtures
RO
4,111,708
1,115,991
(3,296,322)
(118,556)
───────
1,812,821
═══════
7,213,593
(3,627,108)
(495,680)
───────
3,090,805
═══════
73,705
205
(12,164)
(21,583)
───────
40,163
═══════
───────
═══════
240,647
168,523
33,628
7,500
(23,170)
(43,335)
(69,353)
(41,701)
─────── ───────
181,752
90,987
══════ ═══════
1,099,391
(1,099,391)
───────
═══════
12,907,567
1,157,324
(8,101,490)
(746,873)
───────
5,216,528
═══════
5,405,184
(1,293,476)
───────
4,111,708
═══════
13,101,052
(5,887,459)
───────
7,213,593
═══════
292,986
(219,281)
───────
73,705
═══════
98,561
(98,561)
───────
═══════
544,237
355,834
(303,590) (187,311)
─────── ───────
240,647
168,523
══════ ═══════
1,099,391
───────
1,099,391
═══════
20,897,245
(7,989,678)
───────
12,907,567
═══════
2,425,265
(612,444)
───────
1,812,821
═══════
5,565,638
(2,474,833)
───────
3,090,805
═══════
241,721
(201,558)
───────
40,163
═══════
98,561
(98,561)
───────
═══════
498,811
222,461
(317,059) (131,474)
─────── ───────
181,752
90,987
══════ ═══════
───────
═══════
9,052,457
(3,835,929)
───────
5,216,528
═══════
Group
Building
RO
1 January 2009, net of accumulated depreciation
Additions
Disposals
Depreciation charge for the period
30 Sep 2009, net of accumulated depreciation
At 1 January 2009
At cost
Accumulated depreciation
At 30 Sep 2009
At cost
Accumulated depreciation
Leasehold
improvements
RO
Office
equipment
RO
Vehicles
RO
Capital
work in
progress
RO
The property, plant and equipment of subsidiary companies are mortgaged as security against Government and other term loans.
The depreciation charge for the period has been included in cost of sales in the amount of RO 562,836 and administration expenses in the amount of RO 184,036.
Total
RO
Page 18
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
11
PROPERTY, PLANT AND EQUIPMENT (continued)
Parent
1 January, net of accumulated depreciation
Additions
Depreciation charge for the period
30 Sep 2009, net of accumulated depreciation
1 January 2009
At cost
Accumulated depreciation
30 Sep 2009
At cost
Accumulated depreciation
Furniture and
fixtures
RO
Leasehold
improvements
RO
Office
equipment
RO
Vehicles
RO
Total
RO
676
(172)
───────
504
═══════
───────
═══════
14,528
6,645
(4,882)
───────
16,291
═══════
69,604
(19,331)
───────
50,273
═══════
84,808
6,645
(24,385)
───────
67,068
═══════
91,265
(90,589)
───────
676
═══════
98,561
(98,561)
───────
═══════
88,333
(73,805)
───────
14,528
═══════
142,714
(73,110)
───────
69,604
═══════
420,873
(336,065)
───────
84,808
═══════
91,265
(90,761)
───────
504
═══════
98,561
(98,561)
───────
═══════
93,555
(77,264)
───────
16,291
═══════
142,714
(92,441)
───────
50,273
═══════
426,095
(359,027)
───────
67,068
═══════
Page 19
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
12
ACCOUNTS PAYABLE AND ACCRUALS
31 December
2008
Group
RO
30 Sep 2009
Group
RO
30 Sep
2008
Group
RO
1,762,476
260,831
2,332
56,071
94,489
191,035
───────
2,367,234
═══════
4,047,863
707,883
7,189
123,578
106,427
220,526
───────
5,213,466
═══════
1,194,066
782,061
31,885
44,996
888,423
104,514
222,441
───────
3,268,386
═══════
30 Sep 2009
Accounts payable
Other payables and accruals
Interest payable
Directors’ remuneration
Due to related parties
Unclaimed dividend
Employees’ end of service benefit
Parent
RO
30 Sep
2008
Parent
RO
31 December
2008
Parent
RO
26,826
140,737
2,332
15,863
94,489
124,975
───────
405,222
═══════
21,721
281,123
7,189
108,513
106,427
118,912
───────
643,885
═══════
22,874
223,077
31,885
26,332
104,514
112,836
──────
521,518
═══════
Movements in the liability recognized for employees end of service benefits
1 January
Expenses recognised in the statement
of income
Other transfer
222,441
146,321
146,321
112,836
84,205
84,205
37,250
-
83,062
-
102,371
(10,426)
15,458
-
41,404
-
45,754
(10,426)
End of service benefits paid
(28,923)
(8,857)
(15,825)
(3,319)
(6,697)
(6,697)
──────
222,441
═════
──────
124,975
═════
──────
118,912
═════
Transfer relating to Dhofar Fisheries
(see note 10(a))
30 Sep / 31 December
(39,733)
──────
191,035
═════
──────
220,526
═════
──────
112,836
═════
Page 20
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
13
TERM LOANS
30 Sep
2009
Group
RO
Bank in Oman
Rial Omani term loans
Banks in UAE
UAE Dirham term loan
30 Sep
2008
Group
RO
31 December
2008
Group
RO
30 Sep
2009
Parent
RO
30 Sep 2008
Parent
RO
31 December
2008
Parent
RO
11,073,967
13,071,137
13,552,809
11,073,967
9,835,000
10,535,000
510,619
───────
11,584,586
═══════
3,445,405
───────
16,516,542
═══════
3,389,284
───────
16,942,093
═══════
510,619
───────
11,584,586
═══════
3,445,405
───────
13,280,405
═══════
3,389,284
───────
13,924,284
═══════
10,594,642
5,921,900
───────
16,516,542
═══════
7,872,064
9,070,029
───────
16,942,093
═══════
3,406,004
8,178,582
───────
11,584,586
═══════
7,951,005
5,329,400
───────
13,280,405
═══════
The maturity of the bank loans are as follows:
Due within one year
Due after one year
3,406,004
8,178,582
───────
11,584,586
═══════
7,175,824
6,748,460
───────
13,924,284
═══════
Page 21
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
14
LOAN FROM GOVERNMENTS
30 Sep
2009
30 Sep
2008
31 December
2008
30 Sep
2009
30 Sep
2008
31 December
2008
Group
RO
Group
RO
Group
RO
Parent
RO
Parent
RO
Parent
RO
15,000,000
3,776,000
───────
18,776,000
═══════
15,000,000
3,786,000
4,000,000
───────
22,786,000
═══════
15,000,000
───────
15,000,000
═══════
15,000,000
Loan from Governments:
– Parent Company
– Oman Euro Foods Industries Co SAOG
– Dhofar Fisheries Industries Co SAOG
15,000,000
3,786,000
4,000,000
───────
22,786,000
═══════
15,000,000
───────
15,000,000
═══════
───────
15,000,000
═══════
Page
22
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
15
SHARE CAPITAL
30 Sep
2009
RO
30 Sep
2008
RO
31 December
2008
RO
Authorised – 200,000,000 Shares of RO 0.100 each
20,000,000
20,000,000
20,000,000
Issued – 121,875,000 Shares of RO 0.100 each
═══════
12,187,500
═══════
═══════
12,187,500
═══════
═══════
12,187,500
═══════
Shareholders of the Parent Company who own 10% or more of the shares, whether in their name, or through a
nominee account, and the number of shares they hold are as follows:
%
Abu Dhabi Investment Authority, UAE
30
30 Sep 2009
36,562,500
════════
30 Sep
2008
36,562,500
════════
31 December
2008
36,562,500
════════
Page 23
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
16
CUMULATIVE CHANGES IN FAIR VALUES OF AVAILABLE FOR SALE INVESTMENTS
30 Sep
2008
Group
RO
31 December
2008
Group
RO
30 Sep
2009
Parent
RO
1,915,826
(10,598)
2,622,728
(5,875)
2,622,728
(5,875)
1,912,056
(10,598)
2,205,453
(5,875)
1,728,088
(157,249)
(2,663,544)
1,711,027
196,662
(2,250,039)
1,962,517
462,801
-
1,962,517
───────
1,915,826
═══════
───────
4,075,286
═══════
30 Sep
2009
Group
RO
1 January
Realised during the period / year
Net movement in fair values
during the period / year
Transfer to impairment of
Investments – Quoted
Transfer relating to Dhofar
Fisheries (see note 10(a))
30 Sep /31 December
462,801
(6,605)
───────
4,089,512
═══════
───────
2,459,604
═══════
30 Sep
2008
Parent
RO
───────
2,396,240
═══════
31 December
2008
Parent
RO
2,205,453
(5,875)
───────
1,912,056
═══════
Page 24
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
17
EARNINGS PER SHARE
Earnings per share calculated by dividing the net profit for the period by the weighted average number of
shares outstanding during the period is as follows:
30 Sep
2008
Group
RO
30 Sep
2009
Parent
RO
30 Sep
2008
Parent
RO
(8,105,480)
───────
5,342,528
───────
(6,379,879)
───────
121,875,000
121,875,000
121,875,000
───────
───────
────────
────────
0.005
=========
(0.067)
=========
0.044
==========
(0.052)
==========
30 Sep
2009
Group
RO
Net profit / (Loss) for the period attributable
to equity holders of the Parent Company
Weighted average number of shares with
face value of RO 0.100 each, outstanding
during the period (Nos.)
Earnings per share
606,991
───────
121,875,000
No figure for diluted earnings per share has been presented as the Group and the Parent Company have not
issued any instruments which would have an impact on earnings per share when exercised.
18
INTEREST INCOME
Interest on fixed deposits
Others
9 months
ended
30 Sep
2009
Group
RO
9 months
ended
30 Sep
2008
Group
RO
9 months
ended
30 Sep
2009
Parent
RO
9 months
ended
30 Sep
2008
Parent
RO
62,378
71,070
───────
133,448
═══════
43,617
65,002
───────
108,619
═══════
7,509
91,457
───────
98,966
═══════
4,416
65,002
───────
69,418
═══════
Page 25
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
19
GROSS LOSS ON SALE OF FOOD PRODUCTS
The gross loss on sale of food products recorded by the Parent Company’s subsidiaries OEFIC and OPGB
arises from the following:
Sales
Cost of sales
Gross loss
20
9 months
ended
30 Sep
2009
Group
RO
9 months
ended
30 Sep
2008
Group
RO
9 months
ended
30 Sep
2009
Parent
RO
9 months
ended
30 Sep
2008
Parent
RO
1,171,122
(1,970,976)
────────
(799,854)
════════
2,807,508
(3,653,326)
────────
(845,818)
════════
────────
════════
────────
════════
ADMINISTRATION EXPENSES
9 months
ended
30 Sep
2009
Group
RO
Legal and professional fees
Traveling expenses
Advertisement and promotion
Rent
Securities market fees and charges
Depreciation
Postage, fax and telephone
Directors’ sitting fees
General meeting expenses
Repairs and maintenance
Seminar expenses
Project development expenses
Portfolio Management fees
Amortisation of Intangible assets
Directors remuneration
Others
83,721
84,075
35,933
111,207
39,603
184,036
48,891
50,339
16,155
24,740
626
58,258
100,372
13,500
4,458
215,617
───────
1,071,531
═══════
9 months
ended
30 Sep
2008
Group
RO
9 months
ended
30 Sep
2009
Parent
RO
9 months
ended
30 Sep
2008
Parent
RO
115,964
104,515
48,105
83,641
48,825
140,530
61,527
45,901
37,214
24,089
4,225
88,423
191,058
11,794
538,342
───────
1,544,153
═══════
39,521
52,750
12,071
43,525
9,445
24,386
14,904
25,200
16,154
11,276
626
58,258
45,863
24,726
───────
378,705
═══════
70,417
39,720
27,030
44,071
13,169
24,784
24,117
14,100
37,014
10,251
4,225
88,423
98,151
37,165
───────
532,637
═══════
Page 26
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
21
NET (LOSS) / PROFIT FOR THE PERIOD
The net (loss) / profit for the period is stated after:
Staff costs:
Salaries and benefits
Employees’ end of service benefits
Net unrealised gain on trading
investments:
Unrealised gain on trading
investments
Unrealised loss on trading
investments
9 months
ended
30 Sep
2009
Group
RO
9 months
ended
30 Sep
2008
Group
RO
9 months
ended
30 Sep
2009
Parent
RO
9 months
ended
30 Sep
2008
Parent
RO
1,428,575
37,250
───────
1,465,825
══════
1,395,049
86,755
───────
1,481,804
══════
617,051
15,458
───────
632,509
══════
642,726
35,472
───────
678,198
══════
2,991,446
378,231
2,367,944
267,132
(231,478)
------------------------2,759,968
═══════
(9,139,002)
------------------------(8,760,771)
═══════
(169,648)
------------------------2,198,296
═══════
(8,062,890)
------------------------(7,795,758)
═══════
The variation between the net profit of the Parent Company : RO 5,342,528 and the Group : RO
234,279 during the period Jan – Sept 2009 is primarily on account of the elimination of realized gains
of RO 3,365,736 arisen out of the sale of 34.22% equity stake in Emirates Ship Investment Co LLC
(associate company) and RO 1,524,000 due to the sale of 60% in Dhofar Fisheries Industries Co
SAOG (subsidiary) [refer note 10 (a)], other inter company provisions relating to receivables and
impairment of inter company investments as per the accounting procedures followed while
consolidating the results of the Group.
22
IMPAIRMENT OF INVESTMENTS & GOODWILL
Investments:
Subsidiaries (see note 4)
Associates (see note 9)
Available for sale (see note 16)
Sub Total (a)
Goodwill:
Associates (see note 9)
Sub Total (b)
Total (a+b)
9 months
ended
30 Sep
2009
Group
RO
9 months
ended
30 Sep
2008
Group
RO
9 months
ended
30 Sep
2009
Parent
RO
9 months
ended
30 Sep
2008
Parent
RO
462,801
───────
462,801
───────
───────
───────
651,913
561,828
462,801
───────
1,676,542
───────
9,284
───────
9,284
───────
107,913
------------------------107,913
103,102
------------------------103,102
107,913
------------------------107,913
103,102
------------------------103,102
-------------------
------------------
-------------------
------------------
570,714
═══════
103,102
═══════
1,784,455
═══════
112,386
═══════
Page 27
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
23
PERFORMANCE DATA
Net assets
Net assets per share
30 Sep
2009
30 Sep 31 December
2008
2008
30 Sep
2009
30 Sep 31 December
2008
2008
Group
RO
Group
RO
Group
RO
Parent
RO
Parent
RO
Parent
RO
22,646,353
-------------------------0.186
═══════
36,749,932
-------------------------0.302
═══════
19,865,676
------------------------0.163
═══════
18,690,662
------------------------0.153
═══════
22,476,551
------------------------0.184
=========
11,184,904
------------------------0.092
=========
Page 28
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
24
RELATED PARTY TRANSACTIONS
Related parties represent associated companies, major shareholders, Directors and key management
personnel of the Parent Company, and companies of which they are principal owners. Pricing policies and
terms of these transactions are approved by the Parent Company’s management.
Transactions with related parties included in the income statement are as follows:
31 December
2008
Group
RO
30 Sep 2009
5,060,642
20,386
376,825
──────
5,457,853
══════
15,643,695
4,831,218
──────
20,474,913
══════
3,051,273
20,386
376,825
───────
3,448,484
═══════
9,554,735
438,076
4,831,218
───────
14,824,029
═══════
1,830,820
120,839
25,471
236,102
41,029
───────
2,254,261
═══════
10,207,960
160,009
150,987
6,008,292
96,943
───────
16,624,191
═══════
90,163
120,839
236,102
25,200
───────
472,304
═══════
4,753,976
160,009
6,008,292
22,050
───────
10,944,327
═══════
31 December
2008
RO
30 Sep 2009
31 December
2008
RO
30 Sep 2009
Group
RO
Sales and income
- Associated companies
- Subsidiary companies
- Others
Purchases and expenses
- Associated companies
- Key management personnel
- Major shareholder
- Others
- Directors
Amounts due from related parties are as follows:
30 Sep 2009
RO
Associated companies
Subsidiary companies
Others
Less: Impairment provision
829,746
───────
829,746
(550,495)
───────
279,251
═══════
10,971
22,143
──────
33,114
(2,564)
──────
30,550
══════
Parent
RO
RO
825,235
1,642,939
───────
2,468,174
(912,097)
───────
1,556,077
═══════
31 December
2008
Parent
RO
10,971
4,237,891
22,143
───────
4,271,005
(2,267,897)
───────
2,003,108
═══════
Page 29
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
24
RELATED PARTY TRANSACTIONS (continued)
Amounts due to related parties are as follows:
30 Sep
2009
Group
RO
Associated companies
Others
Directors
48,363
7,708
──────
56,071
══════
31 December
2008
Group
RO
44,038
844,385
44,996
──────
933,419
══════
30 Sep 2009
Parent
RO
15,000
863
──────
15,863
══════
31 December
2008
Parent
RO
26,332
──────
26,332
══════
Compensation of key management personnel
The remuneration of directors and other members of key management during the period was as follows:
Directors’ sitting fees
Directors’ remuneration
Key management personnel
- Short term benefits
- Post employment benefits
41,029
-
60,943
36,000
25,200
-
22,050
-
116,587
4,252
───────
120,839
═══════
154,339
5,670
──────
160,009
══════
116,587
4,252
───────
120,839
═══════
154,339
5,670
───────
160,009
═══════
The commitments and contingency with related parties are detailed in the note 25 to these condensed interim
financial statements.
25
COMMITMENTS AND CONTINGENCIES
The Parent Company’s bankers have issued a letter of guarantee to the Central Bank of the UAE on behalf
of the Parent Company for RO 314,100 (31 December 2008: RO 314,100) for carrying out investment
banking activities.
The Parent Company’s bankers have issued unconditional guarantees aggregating to RO 250,000 (31
December 2008 – RO 250,000) to a bank towards credit facilities granted to Omani Euro Food Industries
Co SAOG.
The bankers of the Parent Company have provided unconditional guaranties amounting to RO 1,256,400 on
account of its subsidiary United Brokerage Co LLC in favour of Securities markets in UAE.
The bankers of United Brokerage Co LLC, a subsidiary of the Group, have issued, an unconditional
guarantee to the Securities Markets in United Arab Emirate of Abu Dhabi aggregating to RO 837,600 (31
December 2008: RO 3,664,500) for carrying out brokerage activities.
The Board of Directors believes that the fair value of these guarantees is not significant to the Parent
Company’s and the Group financial position as at 30 Sep 2009.
Page 30
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
26
SEGMENTAL INFORMATION
The Group operates in the investment industry. The Group’s operating revenues arise primarily from
investment activities. The Group operates in two geographic locations; the Sultanate of Oman and the
United Arab Emirates. The geographical analysis of income, expenses, profit and assets and liabilities is
based primarily upon the location of the branch responsible for reporting the results.
Group
Operating income
Overheads
Net income
Finance cost
Provision for
doubtful debts
Share of profits of
associates
Impairment of
invest.& goodwill
Directors’
remuneration
Profit /(Loss) before
tax
30 Sep
2009
RO
Oman
30 Sep
2008
RO
UAE
30 Sep 30 Sep 2008
2009
RO
RO
5,299,717
(1,645,387)
───────
3,654,330
───────
(883,976)
(5,533,805)
(1,614,574)
───────
(7,148,379)
───────
(927,271)
137,237
(569,716)
(945,446) (1,399,590)
─────── ───────
(1,515,162) (1,262,353)
─────── ───────
(391,183)
(255,360)
(547,931)
(69)
-
460,034
-
739,510
(243,445)
(103,102)
(327,269)
-----------------------2,430,160
-----------------------(7,439,311)
-----------------------(2,195,881)
------------------------
------------------------
------------------------
Oman
31December
2008
Total
30 Sep 2008
RO
(5,396,568)
4,730,001
(3,014,164)
(2,590,833)
─────── ───────
(8,410,732)
2,139,168
─────── ───────
(1,318,454)
(1,139,336)
(69)
(646,021)
451,182
1,199,544
(570,714)
(103,102)
(11,794)
-----------------------(1,205,296)
-----------------------234,279
(11,794)
-----------------------(8,644,607)
------------------------
------------------------
------------------------
UAE
31 December
2008
30 Sep 2009
Total
RO
RO
RO
RO
31
December
2008
RO
50,223,660 76,574,018
═══════ ═══════
24,215,658 33,544,517
═══════ ═══════
10,428,211
═══════
12,673,172
═══════
31,756,403
═══════
22,469,740
═══════
60,651,871
═══════
36,888,830
═══════
108,330,421
═══════
56,014,257
═══════
30 Sep
2009
RO
Segment liabilities
-
451,182
Group
Segment assets
(98,090)
30 Sep
2009
RO
30 Sep 2009
Page 31
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 Sep 2009
27
KEY SOURCES OF ESTIMATION UNCERTAINTY
Impairment of accounts receivables
An estimate of the collectible amount of accounts receivable is made when collection of the full amount is
no longer probable. For individually significant amounts, this estimation is performed on an individual
basis. Amounts which are not individually significant, but which are past due, are assessed collectively and
a provision applied according to the length of time past due, based on historical recovery rates.
Valuation of unquoted equity investments
Valuation of unquoted equity investment is normally based on one of the following:

recent arm’s length market transactions

current fair value of another instrument that is substantially the same; or

the expected cash flows discounted at current rates applicable for items with similar terms and risk
characteristics; or

other valuation models
If the fair value of an unquoted equity investment cannot be reliably measured, it is measured at cost.
28
COMPARATIVE FIGURES
Certain corresponding figures presented in these unaudited condensed interim financial statements for
comparative purposes have been reclassified in order to conform with the presentation for the current
period.