Oman & Emirates Investment Holding Co. (SAOG)
Directors’ Report &
Financial Statements
30 September 2008
(Reviewed by KPMG, Auditors)
English Version
Oman & Emirates Investment Holding
Company SAOG
UNAUDITED CONDENSED INTERIM
CONSOLIDATED AND PARENT COMPANY
FINANCIAL STATEMENTS
30 SEPTEMBER 2008
Registered office:
Principal place of business:
Oman & Emirates Investment Holding Co. SAOG
P.O. Box 2205, Ruwi
Postal Code 112
Sultanate of Oman
Majan House
5th Floor
Al Khuwair
Sultanate of Oman
Oman & Emirates Investment Holding Company SAOG
Unaudited Condensed Interim Consolidated and Parent Company Financial Statements
for the six month period ended 30 September 2008
Contents
Review Report
Page
1
Unaudited condensed interim balance sheet
2-2(a)
Unaudited condensed interim statement of income
3-3(a)
Unaudited condensed interim statement of cash flow
Unaudited condensed interim statement of changes in equity
Notes to the unaudited condensed interim financial statements
4
5-6
7 - 30
Page 1
Review Report to the Directors of Oman and Emirates Investment Holding Co. SAOG
Introduction
We have reviewed the unaudited condensed interim consolidated and Parent Company balance sheet of Oman
and Emirates Investment Holding Co. SAOG (“the Parent Company”) and its subsidiaries (“the Group”) as at 30
September 2008 and the related condensed interim consolidated and Parent Company statements of income,
cash flows and changes in equity, for the six month period then ended set out in pages 2 to 30.
Management is responsible for the preparation and presentation of this unaudited consolidated interim financial
information in accordance with the International Accounting Standard No. 34 “Interim Financial Reporting” and
the disclosure requirements of the Capital Market Authority. Our responsibility is to express a conclusion on this
condensed consolidated and Parent Company financial information based on our review.
Scope of review
Except as described in the following paragraph, 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 Note 4 to the condensed interim consolidated financial statements, the Management has
consolidated the financial information of some subsidiaries as at and for the nine month period ended 30
September 2008 based on management accounts of those subsidiaries as at 30 September 2008 which have not
been reviewed by their independent auditors. Furthermore, the Group’s share in the results of the associate
companies is calculated based on such management accounts as at and for the nine month period ended 30
September 2008.
We were unable to obtain appropriate evidence in respect of these financial information of the subsidiaries and
associate companies included in the condensed consolidated financial information as at and for the nine month
period ended 30 September 2008.
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 condensed consolidated financial information, nothing has
come to our attention that causes us to believe that the unaudited condensed interim consolidated and Parent
Company financial information is not:
i)
prepared, in all material respects, in accordance with International Accounting Standard No. 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.
Emphasis of matter
Without further qualifying our conclusion, we draw attention to the notes 6 and 7 to the condensed interim
Consolidated and Parent Company financial statements, which disclose a significant fall in the fair values of the
quoted investments subsequent to 30 September 2008.
12 November 2008
KPMG
Page 2
Oman & Emirates Investment Holding Company SAOG
UNAUDITED CONDENSED INTERIM BALANCE SHEET
as at 30 September 2008
Group
Notes
ASSETS
Bank balances and cash
Receivables
Inventories
Trading investments
Investments available for sale
Investments in associates
Investments in subsidiaries
Property, plant and equipment
Intangible assets
TOTAL ASSETS
LIABILITIES
Bank overdrafts
Provision for bank guarantees
Accounts payable and accruals
Term loans
Loans from Governments
TOTAL LIABILITIES
5
8
6
7
9
4
10
5
11
12
13
NET ASSETS
EQUITY
Share capital
Legal reserve
Special reserve
Cumulative changes in fair value
Retained earnings
TOTAL EQUITY
Minority interests
TOTAL EQUITY AND MINORITY INTERESTS
14
15
Parent Company
30-Sep
2008
RO
30-Sep
2007
RO
Audited
31-Dec
2007
RO
30-Sep
2008
RO
30-Sep
2007
RO
Audited
31-Dec
2007
RO
6,487,531
4,037,284
593,790
25,074,400
21,162,964
21,589,035
13,086,982
75,000
92,106,986
5,684,256
6,584,845
943,956
36,477,843
10,387,493
13,571,803
13,311,410
75,000
87,036,606
3,854,632
10,328,007
836,465
39,128,810
13,036,049
18,436,487
13,532,882
75,000
99,228,332
328,082
2,282,515
20,662,699
20,977,019
12,994,583
3,307,203
92,194
60,644,295
385,036
3,275,577
30,327,006
10,170,726
4,623,342
3,966,674
63,277
52,811,638
40,836
5,988,061
33,562,924
12,614,415
10,084,991
3,316,487
72,245
65,679,959
8,870,036
5,213,466
16,516,542
22,786,000
53,386,044
5,485,767
3,469,052
10,607,028
22,800,000
42,361,847
6,446,204
6,986,884
13,418,268
22,794,000
49,645,356
5,079,666
4,163,788
643,885
13,280,405
15,000,000
38,167,744
3,565,150
146,250
612,636
7,256,552
15,000,000
26,580,588
4,433,887
4,550,038
907,190
10,248,201
15,000,000
35,139,316
38,720,942
44,674,759
49,582,976
22,476,551
26,231,050
30,540,643
12,187,500
2,747,324
2,459,604
19,355,504
36,749,932
1,971,010
38,720,942
7,500,000
2,735,530
2,000,000
1,937,729
24,673,682
38,846,941
5,827,818
44,674,759
7,500,000
2,747,324
2,622,728
34,023,484
46,893,536
2,689,440
49,582,976
12,187,500
2,500,000
2,396,240
5,392,811
22,476,551
22,476,551
7,500,000
2,500,000
2,000,000
1,553,543
12,677,507
26,231,050
26,231,050
7,500,000
2,500,000
2,205,453
18,335,190
30,540,643
30,540,643
Page 2 (a)
Oman & Emirates Investment Holding Company SAOG
UNAUDITED CONDENSED INTERIM BALANCE SHEET
as at 30 September 2008
These unaudited condensed interim financial statements were approved and authorised for issue in accordance with a resolution of the Directors on 12 November 2008
and signed on their behalf by:
Dr. Hamad Hashim Al Dhahab
Vice Chairman
The notes on pages 7 to 30 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 STATEMENT OF INCOME
for the nine month period ended 30 September 2008
Notes
Interest income
Group
Jan – Sep
2007
RO
July - Sep
2008
RO
July - Sep
2007
RO
Jan – Sep
2008
RO
Parent Company
Jan – Sep
July - Sep
2007
2008
RO
RO
July - Sep
2007
RO
108,619
222,506
44,563
69,708
69,418
146,608
23,922
31,128
711,596
184,462
135,305
40,322
-
-
-
-
1,744,631
1,502,423
1,299,793
1,441,492
125,999
(5,300)
501,911
1,008
1,142,813
2,305,777
1,158,865
1,439,900
91,618
778
482,788
91,805
23
(8,760,771)
7,346,806
(10,280,152)
2,126,064
(7,795,758)
6,394,429
(8,505,350)
1,782,609
20
21
(845,818)
142,751
(922,950)
262,979
(360,435)
87,596
(427,559)
22,013
107,191
71,805
70,249
16,558
9
1,199,544
4,259,628
(562,387)
4,330,134
-
-
-
-
(4,197,025)
14,094,716
(10,814,811)
6,663,601
(4,170,559)
9,211,607
(8,318,783)
2,404,888
23
22
(1,481,804)
(1,353,095)
(191,058)
(959,323)
(825,130)
(177,430)
(269,234)
(519,507)
(55,462)
(320,056)
(215,433)
(62,412)
(678,198)
(434,486)
(98,151)
(442,998)
(364,218)
(73,507)
(174,060)
(82,334)
(26,601)
(128,765)
(74,795)
(25,751)
8
(69)
(103,102)
(1,318,454)
(20,277)
(91,377)
(543,146)
(902,310)
(20)
(103,102)
(448,643)
(347,732)
(233,253)
(9,284)
(103,102)
(652,846)
(443,868)
(357,203)
(786,364)
(58,125)
(410,046)
(154,725)
(103,102)
(221,594)
(6,990)
(357,203)
(5,203)
(58,125)
(174,963)
TOTAL EXPENSES
(4,447,582)
(3,518,993)
(1,395,968)
(945,633)
(2,209,320)
(2,936,329)
(762,416)
(831,795)
NET PROFIT / (LOSS) FOR
THE PERIOD
(8,644,607)
10,575,723
(12,210,779)
5,717,968
(6,379,879)
6,275,278
(9,081,199)
1,573,093
Brokerage commission income
Realised gain on sale of
investments
Dividend income
Unrealised (loss) / gain on
investments held for trading
(net)
Gross loss on sale of food
products
Other income
Share of profit / (loss) from
associates (net)
19
Jan – Sep
2008
RO
TOTAL INCOME
Staff related expenses
Administration expenses
Portfolio management fees
Provision for bad and doubtful
debts
Impairment of investments
Impairment of goodwill
Provision for bank guarantee
Finance costs
Oman & Emirates Investment Holding Company SAOG
Page 3(a)
UNAUDITED CONDENSED INTERIM STATEMENT OF INCOME
for the nine month period ended 30 September 2008
Notes
NET (LOSS) / PROFIT FOR
THE PERIOD
Attributable to:
Equity holders of the Parent
Company
Minority Interests
Basic earnings per share for
(loss) / profit for the period
attributable to equity holders of
the Parent Company (restated)
18
Jan – Sep
2008
RO
Group
Jan – Sep
2007
RO
July - Sep
2008
RO
Jan – Sep
2008
RO
Parent Company
Jan – Sep
July - Sep
2007
2008
RO
RO
July - Sep
2007
RO
(8,644,607)
10,575,723
(12,210,779)
5,717,968
(6,379,879)
6,275,278
(9,081,199)
1,573,093
(8,105,480)
(539,127)
10,315,200
260,523
(11,771,632)
(439,147)
5,691,316
26,652
(6,379,879)
-
6,275,278
-
(9,081,199)
-
1,573,093
-
(8,644,607)
10,575,723
(12,210,779)
5,717,968
(6,379,879)
6,275,278
(9,081,199)
1,573,093
(0.067)
0.085
(0.097)
0.047
(0.052)
0.051
(0.075)
0.013
The attached notes on pages 7 to 30 form an integral part of these condensed interim financial statements.
The review report is set forth on page 1.
July - Sep
2007
RO
Page 4
Oman & Emirates Investment Holding Company SAOG
UNAUDITED CONDENSED INTERIM STATEMENT OF CASH FLOWS
for the nine month period ended 30 September 2008
Group
30-Sep-08
RO
OPERATING ACTIVITIES
(Loss) / Profit before tax
Adjustments for:
Share of results of associates
Depreciation
Dividend and interest income
Realised gain on sale of investments
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
Provision for bank guarantee
Profit on Sale of Fixed Assets
Interest expense
30-Sep-07
RO
Parent Company
30-Sep-07
30-Sep-08
RO
RO
(8,644,607)
10,575,723
(6,379,879)
6,275,278
(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)
(4,259,628)
819,536
(1,663,998)
(1,299,793)
(7,346,806)
634,523
20,277
902,310
(1,617,856)
24,785
(2,375,196)
(1,142,813)
7,795,759
112,385
41,404
233,253
(64)
652,846
(1,037,520)
24,831
(1,586,508)
(1,158,865)
(6,394,429)
1,143,567
443,868
58,125
410,046
(784,087)
Working capital changes
Receivables
Payables
Inventories
Intangible Assets
6,344,585
(1,847,624)
242,674
-
(265,982)
(3,204,172)
72,947
(3,000)
3,086,044
(298,013)
-
(2,952,777)
(533,713)
-
Cash generated by / (used in) operations
Interest paid
End of service benefits paid
2,598,708
(1,318,454)
(12,549)
(5,018,063)
(902,310)
-
1,750,511
(652,846)
(6,697)
(4,270,577)
(410,046)
-
1,267,705
(5,920,373)
1,090,968
(4,680,623)
(395,323)
292
1,611,043
717,554
19,604,843
(23,754,864)
(834,164)
39,778
1,663,998
91,182
9,235,805
(7,609,873)
(44,961)
292
2,375,196
14,106,001
(19,043,233)
(77,880)
37,770
1,586,508
7,307,386
(8,795,103)
Net cash flow (used in)/ from investing activities
(2,216,455)
2,586,726
(2,606,705)
58,681
FINANCING ACTIVITIES
Injection of capital
Term loans net of repayments
Settlement of Redemption proceeds
Payment of dividend
3,090,274
(31,337)
(1,901,120)
1,352,000
1,570,654
(1,655,685)
3,032,204
(1,875,000)
1,875,677
(1,500,000)
1,157,817
1,266,969
1,157,204
375,677
209,067
(2,066,679)
(358,533)
(4,246,265)
(2,591,572)
2,265,168
(4,393,051)
1,066,151
(2,382,505)
198,489
(4,751,584)
(3,180,114)
Net cash flow from / (used in) operating activities
INVESTING ACTIVITIES
Purchase of equipment
Proceeds from sale of property, plant and equipment
Dividend and interest income
Dividend from associates
Proceeds from sale of investments
Purchase of investments
Net cash flow from 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)
The attached notes 7 to 30 form part of these condensed interim financial statements.
The review report is set forth on page 1.
Page 5
Oman & Emirates Investment Holding Company SAOG
UNDAUDITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
for the nine month period ended 30 September 2008
Group
Attributable to equity holders of the Parent Company
Notes
At 1 January 2007
Net movement in available for sale
investments
Net profit for the period
Transfer to retained earnings
Additional Capital Injection
Other movement
Payment of dividend for the year
2006
At 30 September 2007
At 1 January 2008
Net movement in available for sale
investments
Net profit / (loss) for the period
Cash dividend for the year 2007
Stock Dividend for 2005
Stock Dividend for 2007
Redemption of units
At 30 September 2008
15
Total equity
Share
Capital
Legal
reserve
Special
reserve
Cumulative
changes in
fair value
Retained
earnings
Total
RO
RO
RO
RO
RO
RO
RO
RO
7,500,000
2,735,530
2,000,000
2,033,341
15,858,482
30,127,353
4,297,891
34,425,244
-
-
-
(95,612)
-
10,315,200
-
(95,612)
10,315,200
-
141,434
260,523
1,352,000
(68,345)
45,822
10,575,723
1,352,000
(68,345)
-
-
-
(1,500,000)
(1,500,000)
(155,685)
(1,655,685)
7,500,000
2,735,530
2,000,000
1,937,729
24,673,682
38,846,941
5,827,818
44,674,759
7,500,000
2,747,324
-
2,622,728
34,023,484
46,893,536
2,689,440
49,582,976
1,875,000
2,812,500
-
-
-
(163,124)
-
(8,105,480)
(1,875,000)
(1,875,000)
(2,812,500)
-
(163,124)
(8,105,480)
(1,875,000)
-
(121,846)
(539,127)
(26,120)
(31,337)
(284,970)
(8,644,607)
(1,901,120)
(31,337)
12,187,500
2,747,324
-
2,459,604
19,355,504
36,749,932
1,971,010
38,720,942
-
15
The attached notes on pages 7 to 30 form part of these condensed interim financial statements.
The review report is set forth on page 1.
Minority
interest
Page 6
Oman & Emirates Investment Holding Company SAOG
UNAUDITED CONDENSED INTERIM STATEMENT OF CHANGES IN EQUITY
for the nine month period ended 30 September 2008
Parent Company
Attributable to equity holders of the Parent Company
Notes
Share
capital
Legal
reserve
Special
reserve
Cumulative
changes in fair
value
Retained
earnings
Total
RO
7,500,000
-
RO
2,500,000
-
RO
2,000,000
-
RO
2,039,550
(486,007)
-
RO
7,902,229
6,275,278
(1,500,000)
RO
21,941,779
(486,007)
6,275,278
(1,500,000)
7,500,000
2,500,000
2,000,000
1,553,543
12,677,507
26,231,050
7,500,000
-
2,500,000
-
-
2,205,453
190,787
18,335,190
-
30,540,643
190,787
Net (loss) for the period
Stock dividend for 2005
Stock dividend for 2007
Cash dividend for 2007
1,875,000
2,812,500
-
-
-
-
(6,379,879)
(1,875,000)
(2,812,500)
(1,875,000)
(6,379,879)
(1,875,000)
At 30 September 2008
12,187,500
2,500,000
-
2,396,240
5,392,811
22,476,551
At 1 January 2007
Net movement in available for sale investments
Net profit for the period
Payment of Dividend
15
At 30 September 2007
At 1 January 2008
Net movement in available for sale investments
15
The attached notes on pages 7 to 30 form part of these condensed interim financial statements.
The review report is set forth on page 1.
Page 7
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
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
The unaudited condensed interim consolidated and Parent Company financial statements have been
prepared in accordance with the International Financial Reporting Standards (IFRS), 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 statement, 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 2007.
The financial statements have been presented in Rial Omani, which is the 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 2007.
Page
8
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
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-07
Cost
RO
30-Sep-08
Percentage
held
%
30-Sep-08
Cost
Company name
Activity
31-Dec-07
Cost
RO
30-Sep-07
Percentage
held
%
RO
31-Dec-07
Percentage
held
%
(i)
United Brokerage Company LLC, UAE
Financial services
1,570,500
50.00%
1,570,500
50.00%
1,570,500
50.00%
(ii)
Majan Capital Fund JIA
Financial services
1,412,059
90.83%
1,412,059
55.58%
1,412,059
90.31%
(iii)
Omani Pedigree Goat Breeding Co LLC
Breeding of Goats
324,644
100.00%
878,000
100.00%
324,644
100.00%
(iv)
Omani Euro Food Industries Co SAOG
Manufacture of
baby food
1,913,251
65.80%
1,358,197
65.80%
1,913,251
65.80%
(v)
Dhofar Fisheries Industries Co SAOG
Fish Processing
2,517,812
99.13%
2,517,812
99.13%
2,517,812
99.13%
Total cost
Less: Impairment losses for (iv) and (v) above
7,738,266
7,736,568
7,738,266
(4,431,063)
(3,769,894)
(4,421,779)
3,307,203
3,966,674
3,316,487
Apart from United Brokerage Company LLC, the condensed interim consolidated financial information as at and for the nine month period ended 30 September 2008, include unreviewed
financial information of the above subsidiaries.
Page
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
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-08
30-Sep-07
31-Dec-07
30-Sep-08
30-Sep-07
31-Dec-07
Group
RO
Group
RO
Group
RO
Parent
RO
Parent
RO
Parent
RO
6,487,531
5,684,256
3,854,632
328,082
385,036
40,836
(8,870,036)
(5,485,767)
(6,446,204)
(5,079,666)
(3,565,150)
(4,433,887)
(2,382,505)
198,489
(2,591,572)
(4,751,584)
(3,180,114)
(4,393,051)
9
Page 10
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
6
TRADING INVESTMENTS
Group
Local quoted investments:
Banking and investment sector
Manufacturing sector
Services and other sectors
Overseas quoted investments:
Banking and investment sector
Manufacturing Sector
Services and other sectors
Total
30-Sep-08
30-Sep-08
30-Sep-07
30-Sep-07
31-Dec-07
31-Dec-07
Carrying
value
RO
Original
Cost
RO
Carrying
value
RO
Original
Cost
RO
Carrying
value
RO
Original
Cost
RO
16,493,711
2,041,871
3,508,720
11,579,412
2,154,321
3,466,642
25,477,659
3,194,714
4,332,902
13,418,763
2,683,589
3,476,541
25,928,889
3,252,302
5,715,916
11,431,348
2,832,792
4,221,077
22,044,302
17,200,375
33,005,275
19,578,893
34,897,107
18,485,217
1,625,739
16,253
1,388,106
935,448
22,908
840,893
2,091,366
1,381,202
970,052
952,655
2,360,977
1,870,726
944,584
1,019,685
3,030,098
1,799,249
3,472,568
1,922,707
4,231,703
1,964,269
25,074,400
18,999,624
36,477,843
21,501,600
39,128,810
20,449,486
Investments aggregating RO 16,891,625 are pledged to commercial banks as security against credit facilities..
Subsequent to 30 September 2008, there has been significant volatility in the market values of the quoted trading investments held by the Group. Consequently, the values disclosed
at the balance sheet date may not be representative of values at subsequent dates. Based on market values as at 4 November 2008, the aggregate decrease in such values are in the
amount of approximately RO 4.732 million
Page 11
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
6
TRADING 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
Total
30-Sep-08
30-Sep-08
30-Sep-07
30-Sep-07
31-Dec-07
31-Dec-07
Carrying
value
RO
Original
Cost
RO
Carrying
value
RO
Original
Cost
RO
Carrying
value
RO
Original
Cost
RO
14,614,738
1,196,652
2,298,983
9,002,232
1,192,622
2,281,597
23,323,504
1,608,988
2,553,154
11,670,608
1,400,795
1,855,179
23,944,237
2,062,165
4,024,848
9,759,235
1,743,765
2,763,412
18,110,373
12,476,451
27,485,646
14,926,582
30,031,250
14,266,412
1,293,687
1,258,639
664,972
765,371
1,641,139
1,200,221
718,873
869,295
1,893,474
1,638,200
693,405
869,295
2,552,326
20,662,699
1,430,343
13,906,794
2,841,360
30,327,006
1,588,168
16,514,750
3,531,674
33,562,924
1,562,700
15,829,112
Investments aggregating RO 16,489,344 are pledged to commercial banks as security against credit facilities.
Subsequent to 30 September 2008, there has been significant volatility in the market values of the quoted trading investments held by the Parent Company. Consequently, the values
disclosed at the balance sheet date may not be representative of values at subsequent dates. Based on market values as at 4 November 2008, the aggregate decrease in such values are in the
amount of approximately RO 3.554 million
Page 12
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
7
AVAILABLE FOR SALE
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
Local unquoted investments:
Banking and investment sector
Service
Industrial
Overseas unquoted investment
Banking and investment sector
Industrial
Service
Total
30-Sep-08
Carrying
value
RO
30-Sep-08
Original
Cost
RO
30-Sep-07
Carrying
value
RO
30-Sep-07
Original
Cost
RO
31-Dec-07
Carrying
value
RO
31-Dec-07
Original
Cost
RO
754,534
5,828,226
2,733,108
9,315,868
812,955
4,236,655
2,650,616
7,700,226
6,781
2,162,552
3,136,378
5,305,711
2,356
1,569,228
2,301,860
3,873,444
8,328
2,435,129
1,798,702
4,242,159
2,356
1,569,272
1,237,574
2,809,202
596,790
830,671
1,427,461
54,968
199,042
254,010
331,899
570,533
902,432
54,968
251,114
306,082
539,205
1,106,900
1,646,105
54,968
199,501
254,469
458,400
3,978,740
1,744,937
6,182,077
657,000
3,978,740
1,744,937
6,380,677
407,000
41,240
2,401,187
2,849,427
407,000
41,240
2,401,187
2,849,427
467,800
41,240
2,401,187
2,910,227
657,000
41,240
2,401,187
3,099,427
533,970
213,588
3,490,000
4,237,558
21,162,964
533,970
213,588
3,490,000
4,237,558
18,572,471
533,970
213,588
582,365
1,329,923
10,387,493
533,970
213,588
582,365
1,329,923
8,358,876
533,970
213,588
3,490,000
4,237,558
13,036,049
533,970
213,588
3,490,000
4,237,558
10,400,656
Investments aggregating RO 6,056,183 are pledged to commercial banks as security against credit facilities.
Unquoted available for sale investments except the investments in funds are carried at cost, as the Board of Directors considers this approximates to fair value.
Subsequent to 30 September 2008, there has been significant volatility in the market values of the quoted available for sale investments held by the Group. Consequently, the values
disclosed at the balance sheet date may not be representative of values at subsequent dates. Based on market values as at 4 November 2008, the aggregate decrease in such values are in the
amount of approximately RO 1.382 million.
Page 13
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
7
AVAILABLE FOR SALE (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
Total
30-Sep-08
Carrying
value
RO
30-Sep-08
Original
Cost
RO
30-Sep-07
Carrying
value
RO
30-Sep-07
Original
Cost
RO
31-Dec-07
Carrying
value
RO
31-Dec-07
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
2,162,552
2,926,392
5,088,944
1,569,229
2,301,860
3,871,089
2,435,129
1,798,702
4,233,831
1,569,272
1,237,574
2,806,846
596,790
661,182
1,257,972
54,968
130,380
185,348
331,899
570,532
902,431
54,968
182,452
237,420
539,205
693,594
1,232,799
54,968
130,839
185,807
458,400
3,978,740
1,744,937
6,182,077
657,000
3,978,740
1,744,937
6,380,677
407,000
41,240
2,401,188
2,849,428
407,000
41,240
2,401,187
2,849,427
467,800
41,240
2,401,187
2,910,227
657,000
41,240
2,401,187
3,099,427
533,970
213,588
3,490,000
4,237,558
20,977,019
533,970
213,588
3,490,000
4,237,558
18,501,453
533,970
213,588
582,365
1,329,923
10,170,726
533,970
213,588
582,365
1,329,923
8,287,859
533,970
213,588
3,490,000
4,237,558
12,614,415
533,970
213,588
3,490,000
4,237,558
10,329,638
Investments aggregating RO 6,056,183 are pledged to commercial banks as security against credit facilities.
Unquoted available for sale investments except the investments in funds are carried at cost, as the Board of Directors considers this approximate to fair value.
Subsequent to 30 September 2008, there has been significant volatility in the market values of the quoted available for sale investments held by the Parent Company. Consequently, the
values disclosed at the balance sheet date may not be representative of values at subsequent dates. Based on market values as at 4 November 2008, the aggregate decrease in such values are
in the amount of approximately RO 1.323 million.
Page 14
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
8
RECEIVABLES
30-Sep-08
Group
RO
30-Sep-07
Group
RO
31-Dec-07
Group
RO
30-Sep-08
Parent
RO
30-Sep-07
Parent
RO
31-Dec-07
Parent
RO
61,241
171,180
217,351
2,907,635
370,433
-
2,929,276
171,180
1,142,475
2,907,635
3,102,407
2,858,712
2,852,386
5,372,492
48,379
49,264
48,662
-
29,748
3,937,500
-
-
3,937,500
Other receivables
1,075,125
768,538
834,913
974,580
174,690
127,114
Prepaid expenses
233,334
4,399,592
215,679
6,991,337
225,174
10,740,512
35,141
4,158,556
33,632
4,307,696
28,917
7,244,600
Provision for impairment in value
(362,308)
(406,492)
(412,505)
(1,876,041)
(1,032,119)
(1,256,539)
4,037,284
6,584,845
10,328,007
2,282,515
3,275,577
5,988,061
412,505
585,833
585,833
1,256,539
1,100,026
1,100,026
69
20,277
26,610
233,253
443,868
668,287
-
320
-
-
-
-
-
-
386,250
-
-
-
(199,938)
(199,938)
-
(511,775)
(511,774)
Write off out of provision
(50,266)
-
-
-
-
-
30 September / 31 December
362,308
406,492
412,505
1,876,041
1,032,119
1,256,539
Amounts due from related parties
Shareholders Loans
Trade receivables
Advance for shares pending allotment
The movement in provision for impairment in value is analysed as follows:
1 January
Provision charged during the period/year
Other transfer
Transfer from provision for bank guarantees
Transfer to impairment of investments
Page 15
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
9
INVESTMENTS IN ASSOCIATES
Associate
Holding
(%)
Emirates Ship Investment Company
LLC (Activity – Cargo handling)
34
The Financial Corporation SAOG
(Activity – Financial services)
36
30-Sep-08
Carrying
value
RO
Cost
Holding
30-Sep-07
Carrying
Cost
Value
RO
RO
Share of
results
RO
Holding
31-Dec-07
Carrying
Cost
Value
RO
RO
Share of
results
RO
RO
Share of
results
RO
9,894,166
2,960,566
460,034
34
11,287,997
2,960,566
4,116,545
34
9,667,078
2,960,566
2,495,626
4,835,027
3,885,453
31,912
26
2,283,806
1,662,776
143,083
29
3,126,997
1,984,785
754,851
31
5,642,412
5,139,640
502,772
(%)
(%)
-
Oman Hotels and Tourism Co SAOG
(Activity – Hospitality services)
31
5,981,974
5,168,564
809,730
Oman Medical Projects Co SAOG
(Acitivity – Medical Services)
38
-
3,012,941
-
35
-
2,909,839
-
35
-
2,909,839
-
-
(3,012,941)
-
-
-
(2,909,839)
-
-
-
(2,909,839)
-
877,868
980,000
(102,132)
-
-
-
-
-
-
-
21,589,035
12,994,583
1,199,544
13,571,803
4,623,342
4,259,628
18,436,487
10,084,991
3,753,249
Less: Impairment of investment
Horizon Technologies CO SAOC
(Activity – PET Recycling)
20
-
The investment in Oman Medical Projects Co SAOG upto 30 September 2008 was carried at nil value as the investment was considered as fully impaired. The Parent Company’s share of
unabsorbed losses amounted to RO 693,218 as at 30 September 2008 and the same was not recognized in the statement of income.
Investments aggregating RO 12,781,007 (31 December 2007 – RO 8,379,956) are pledged to commercial banks as security against credit facilities.
The market value of holdings in Fincorp is RO 7,955,494, Oman Hotels and Tourism Company SAOG is RO 5,732,716 and Oman Medical Projects Co SAOG is RO 2,339,857.
Page 16
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
10
PROPERTY, PLANT AND EQUIPMENT
Group
Plant &
machinery
RO
Furniture
& fixtures
RO
Leasehold
improvements
RO
Office
equipment
RO
Vehicles
Building
RO
1 January 2008, net of accumulated
depreciation
Additions
Disposals
Depreciation charge for the period
4,247,482
1,169
(102,703)
8,007,153
38,473
(617,519)
41,375
48,094
(19,776)
-
30 Sep 2008, net of accumulated depreciation
4,145,948
7,428,107
69,693
5,404,015
(1,156,533)
13,070,139
(5,062,986)
4,247,482
5,405,184
(1,259,236)
4,145,948
At 1 January 2008
At cost
Accumulated depreciation
At 30 Sep 2008
At cost
Accumulated depreciation
RO
Capital - work -in progress
RO
Total
RO
219,997
85,792
(227)
(62,919)
125,548
91,230
(37,160)
891,327
130,565
(919)
-
13,532,882
395,323
(1,146)
(840,077)
-
242,643
179,618
1,020,973
13,086,982
233,620
(192,245)
98,561
(98,561)
441,213
(221,216)
271,455
(145,907)
891,327
-
20,410,330
(6,877,448)
8,007,153
41,375
-
219,997
125,548
891,327
13,532,882
13,108,612
(5,680,505)
7,428,107
281,714
(212,021)
69,693
98,561
(98,561)
-
526,389
(283,746)
242,643
352,685
(173,067)
179,618
1,020,973
1,020,973
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 699,548 and administration expenses in the amount of RO 140,529.
20,794,118
(7,707,136)
13,086,982
Page 17
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
10
PROPERTY, PLANT AND EQUIPMENT (continued)
Parent
1 January, net of accumulated depreciation
Additions
Disposals
Depreciation charge for the period
30 Sep 2008, net of accumulated depreciation
At 1 January 2008
At cost
Accumulated depreciation
Furniture
& fixtures
RO
Office
equipment
RO
Vehicles
RO
Total
RO
60,045
36,500
(19,560)
72,245
44,961
(227)
(24,785)
612
126
(258)
-
11,588
8,335
(227)
(4,967)
480
-
14,729
76,985
92,194
79,314
(67,726)
106,214
(46,169)
374,979
(302,734)
11,588
60,045
72,245
87,032
(72,303)
142,714
(65,729)
419,323
(327,129)
14,729
76,985
92,194
90,890
(90,278)
612
At 30 September 2008
At cost
Accumulated depreciation
Leasehold
improvements
RO
91,016
(90,536)
480
98,561
(98,561)
-
98,561
(98,561)
-
Page 18
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
11
ACCOUNTS PAYABLE AND ACCRUALS
30-Sep-08
Group
RO
Accounts payable
Other payables and accruals
Interest payable
Directors’ remuneration
Due to related parties
Unclaimed dividend
Employees’ end of service benefit
30-Sep-07
Group
RO
31-Dec-07
Group
RO
30-Sep-08
Parent
RO
30-Sep-07
Parent
RO
31-Dec-07
Parent
RO
4,047,863
707,883
7,189
123,578
106,427
220,526
2,363,205
475,092
99,366
113,380
275,020
142,989
4,648,613
953,646
12,600
180,129
1,036,105
9,470
146,321
21,721
281,123
7,189
108,513
106,427
118,912
19,248
218,734
11,206
275,020
88,428
20,633
609,623
12,600
180,129
84,205
5,213,466
3,469,052
6,986,884
643,885
612,636
907,190
Movements in the liability recognized for employees end of service benefits
1 January
Expenses recognised in
the statement of income
Other transfer
End of service benefits paid
146,321
124,945
124,945
84,205
86,359
86,359
83,062
(8,857)
37,354
(8,376)
(10,934)
40,964
(19,588)
41,404
(6,697)
12,717
(8,376)
(2,272)
7,382
(9,536)
30 September / 31 December
220,526
142,989
146,321
118,912
88,428
84,205
Page 19
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
12
TERM LOANS
30-Sep-08
Group
RO
30-Sep-07
Group
RO
31-Dec-07
Group
RO
30-Sep-08
Parent
RO
30-Sep-07
Parent
RO
31-Dec-07
Parent
RO
Banks in Oman
Rial Omani term loans
13,071,137
7,300,476
10,220,067
9,835,000
3,950,000
7,050,000
Banks in UAE
UAE Dirham term loan
3,445,405
3,306,552
3,198,201
3,445,405
3,306,552
3,198,201
16,516,542
10,607,028
13,418,268
13,280,405
7,256,552
10,248,201
10,594,642
5,921,900
16,516,542
3,128,739
7,478,289
10,607,028
3,823,258
9,595,010
13,418,268
7,951,005
5,329,400
13,280,405
2,536,239
4,720,313
7,256,552
3,230,758
7,017,443
10,248,201
30-Sep-08
Group
RO
30-Sep-07
Group
RO
31-Dec-07
Group
RO
30-Sep-08
Parent
RO
30-Sep-07
Parent
RO
31-Dec-07
Parent
RO
15,000,000
2,186,000
1,600,000
4,000,000
15,000,000
2,200,000
1,600,000
4,000,000
15,000,000
2,194,000
1,600,000
4,000,000
15,000,000
-
15,000,000
-
15,000,000
-
22,786,000
22,800,000
22,794,000
15,000,000
15,000,000
15,000,000
The maturity of the bank loans are as follows:
Due within one year
Due after one year
13
LOAN FROM GOVERNMENTS
Loan from Governments
Loan 1 – OEFIC
Loan 2 & 3 – OEFIC
Loan 4 – DFICO
Page
20
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine months period ended 30 September 2008
14
SHARE CAPITAL
30 Sep
2008
RO
Authorised – 200,000,000 Shares of RO 0.100 each
(31 December 2007 – 7,500,000 shares of RO 1 each)
Issued – 121,875,000 Shares of RO 0.100 each
(31 December 2007 - 7,500,000 shares of RO 1 each)
30 Sep
2007
RO
31 December
2007
RO
20,000,000
═══════
7,500,000
═══════
7,500,000
═══════
12,187,500
═══════
7,500,000
═══════
7,500,000
═══════
At an extraordinary general meeting of the Parent Company’s shareholders held on 29 April 2006, the
shareholders approved the increase in the authorized share capital to RO 20 Million from RO 7.5 Million,
grant of a stock dividend at 25% for the year 2005, aggregating to RO 1,875,000 and also the split of 10
shares having a face value of 100 Baizas each for each share having a face value of RO 1 each. These changes
were effected in February 2008 after receipt of the Royal Decree No. 16 / 2008 dated 12 February 2008.
Besides, based on the approval of the shareholders at the Annual General Meeting held on 31 March 2008,
the shareholders were credited with a stock dividend at 30%, aggregating to RO 2,812,500 for the year 2007
in April 2008.
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 Company, UAE
%
30 Sep
2008
RO
30 Sep
2007
RO
31 December
2007
RO
30
3,656,250
════════
2,250,000
════════
2,250,000
════════
Page 21
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine months period ended 30 September 2008
15
CUMULATIVE CHANGES IN FAIR VALUES
30-Sep-08
Group
RO
30-Sep-07
Group
RO
31-Dec-07
Group
RO
30-Sep-08
Parent
RO
30-Sep-07
Parent
RO
31-Dec-07
Parent
RO
2,622,728
2,033,341
2,033,341
2,205,453
2,039,550
2,039,550
(5,875)
(423,377)
(445,989)
(5,875)
(423,377)
(445,989)
Net movement in fair values during the period/year
(157,249)
327,765
1,035,376
196,662
(62,630)
611,892
30 September /31 December
2,459,604
1,937,729
2,622,728
2,396,240
1,553,543
2,205,453
Relating to available for sale investments
1 January
Realised during the period/year
Page 22
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
16
DIVIDENDS
The Shareholders were credited with a stock dividend at 30% and were paid with a cash dividend at 20%
(31 December 2007 – Cash Dividend at 20%) aggregating to RO 4,687,500 (31 December 2007 – RO
1,500,000) on the enlarged share capital of the Parent Company at RO 9,375,000 based on the approval of
the shareholders at the Annual General Meeting held on 31 March 2008.
17
TRUST ACCOUNTS
The nominal value of securities held by the Parent company under trust for customers and not treated as
assets of the Parent Company are analysed as follows:
Securities held under asset management agreement
18
30 Sep
2008
RO
30 Sep
2007
RO
31 December
2007
RO
694,161
═══════
694,161
════════
694,161
════════
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:
Net (loss) / profit for the period
attributable to equity holders of the parent
Weighted average number of shares with
face value of RO 0.100 (2007 – RO 1)
each, outstanding during the period (Nos.)
Earnings per share
9 Months
ended
30-Sep-08
Group
RO
9 Months
ended
30-Sep-07
Group
RO
(Restated)
9 Months
ended
30-Sep-08
Parent
RO
9 Months
ended
30-Sep-07
Parent
RO
(Restated)
(8,105,480)
10,315,200
(6,379,879)
6,275,278
121,875,000
121,875,000
121,875,000
121,875,000
(0.067)
0.085
(0.052)
0.051
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.
19
INTEREST INCOME
Interest on bonds
Interest on fixed deposits
Others
9 Months
ended
30-Sep-08
Group
RO
43,617
65,002
9 Months
ended
30-Sep-07
Group
RO
9,000
172,813
40,693
9 Months
ended
30-Sep-08
Parent
RO
4,416
65,002
9 Months
ended
30-Sep-07
Parent
RO
9,000
96,916
40,692
108,619
222,506
69,418
146,608
Page 23
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
20 GROSS LOSS ON SALE OF FOOD PRODUCTS
The gross loss on sale of food products recorded by the Parent Company’s subsidiaries OEFIC and
DFIC arises from the following:
Sales
Cost of sales
Gross loss
9 Months
ended
30-Sep-08
Group
RO
9 Months
ended
30-Sep-07
Group
RO
9 Months
ended
30-Sep-08
Parent
RO
9 Months
ended
30-Sep-07
Parent
RO
2,807,508
3,134,004
-
-
(3,653,326)
(4,056,954)
-
-
(845,818)
(922,950)
-
-
21 OTHER INCOME
Fund management income
Miscellaneous income
48,079
94,672
46,287
216,692
48,079
59,112
46,287
25,518
142,751
262,979
107,191
71,805
22 ADMINISTRATION EXPENSES
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
Others
115,964
104,515
48,105
83,641
48,825
140,530
61,527
45,901
37,214
24,089
4,225
88,423
550,136
97,034
72,478
146,401
74,308
54,951
59,166
62,465
29,332
22,629
15,185
2,332
40,973
147,876
70,417
39,720
27,030
44,071
13,169
24,784
24,117
14,100
37,014
10,251
4,225
88,423
37,165
65,294
39,887
30,635
40,126
10,530
24,831
21,223
8,850
22,359
6,826
2,332
40,973
50,352
1,353,095
825,130
434,486
364,218
Page 24
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
23
NET PROFIT FOR THE PERIOD
The net profit for the period is stated after:
9 Months
ended
30-Sep-08
Group
RO
9 Months
ended
30-Sep-07
Group
RO
9 Months
ended
30-Sep-08
Parent
RO
9 Months
ended
30-Sep-07
Parent
RO
1,395,049
86,755
912,971
46,352
642,726
35,472
420,796
22,202
1,481,804
959,323
678,198
442,998
Unrealised gain on trading investments
378,231
7,623,160
267,132
6,669,774
Unrealised loss on trading investments
(9,139,002)
(276,354)
(8,062,890)
(275,345)
(8,760,771)
7,346,806
(7,795,758)
6,394,429
Staff costs:
Salaries and benefits
Employees’ end of service benefits
Net unrealised gain on trading investments:
Page 25
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
24
PERFORMANCE DATA
30-Sep-07
Group
RO
31-Dec-07
Group
RO
(Restated)
(Restated)
36,749,932
38,846,941
46,893,536
0.302
0.319
0.385
30-Sep-08
Group
RO
Net assets
Net assets per share of face value at RO 0.100 (31
December 2007 – RO 1) each
30-Sep-07
Parent
RO
31-Dec-07
Parent
RO
(Restated)
(Restated)
22,476,551
26,231,050
30,540,643
0.184
0.215
0.251
30-Sep-08
Parent
RO
Page 26
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
25
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:
9 months
ended
30-Sep-08
Group
RO
9 months
ended
30-Sep-07
Group
RO
9 months
ended
30-Sep-08
Parent
RO
9 months
ended
30-Sep-07
Parent
RO
14,567,379
4,726,331
5,706,547
1,031
-
9,157,439
322,426
4,726,331
3,778,128
146,436
-
19,293,710
5,707,578
14,206,196
3,924,564
9,374,794
122,770
250
6,007,459
45,901
2,725,241
119,312
6,546
35,293
-
4,665,185
122,770
6,007,459
14,100
1,406,001
103,924
98,830
35,293
-
15,551,174
2,886,392
10,809,514
1,644,048
Amounts due from related parties are as follows:
30-Sep-08
RO
31-Dec-07
RO
30-Sep-08
RO
31-Dec-07
RO
370,433
370,433
(3,597)
366,836
61,241
2,872,544
2,933,785
(1,827,379)
1,106,406
370,433
2,731,974
3,102,407
(1,207,876)
1,894,531
Sales and income
- Associated companies
- Subsidiary companies
- Major shareholders
- Others
Purchases and expenses
- Associated companies
- Subsidiary companies
- Key management personnel
- Major shareholder
- Others
- Directors
Associated companies
Subsidiary companies
Less: Impairment provision
61,241
61,241
(3,666)
57,575
Amounts due to related parties are as follows:
Associated companies
Others
8,369
115,209
1,014,024
22,081
8,369
115,209
-
123,578
1,036,105
123,578
-
Page 27
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
25
RELATED PARTY TRANSACTIONS (continued)
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
9 months
ended
30-Sep-08
Group
RO
9 months
ended
31-Sep-07
Group
RO
9 months
ended
30-Sep-08
Parent
RO
9 months
ended
31-Sep-07
Parent
RO
34,108
11,793
═══════
29,332
═══════
14,100
═══════
8,850
═══════
118,518
4,252
───────
122,770
═══════
85,727
4,253
──────
89,980
══════
118,518
4,252
───────
122,770
═══════
85,727
4,253
───────
89,980
═══════
The commitments and contingency with related parties are detailed in the note 26 to these financial
statements.
26
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 2007: 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 2007 – RO 250,000) to a bank towards credit facilities granted to Omani Euro Food Industries
Co SAOG.
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 3,664,500 (31
December 2007: RO 3,664,500) for carrying out brokerage activities and an amount of RO 2,617,500 (31
December 2007: RO 2,617,500) are secured by lien on investment securities given by the Parent Company.
The Parent Company has given corporate guarantee amounting to RO 6,588,822 (31 December 2007 - RO
6,588,822) to Emirates ship Investment Co LLC towards injection of shareholders funds by 31 December
2008 for meeting its investment commitment in a new joint venture which has secured a long term revenue
contract from a steel company of the Abu Dhabi Government.
Omani Pedigree Goat Breeding Co LLC has contractual and non-contractual commitments amounting to
RO 171,190 (31 December 2007: RO 241,190) and RO 1,600,000 (31 December 2007: RO 1,600,000)
respectively as at 30 September 2008.
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 September 2008.
Page 28
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
27
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
Oman
30-Sep-07
30-Sep-08
UAE
30-Sep-07
30-Sep-08
Total
30-Sep-07
30-Sep-08
RO
RO
RO
RO
RO
RO
Operating income
(5,533,805)
8,806,438
137,237
1,028,649
(5,396,568)
9,835,087
Overheads
(1,614,574)
(1,270,931)
(1,411,384)
(690,952)
(3,025,958)
(1,961,883)
Net income
(7,148,379)
7,535,507
(1,274,147)
337,697
(8,422,526)
7,873,204
(927,271)
(745,787)
(391,183)
(156,523)
(1,318,454)
(902,310)
(69)
(713)
-
(19,564)
(69)
(20,277)
739,510
143,083
460,034
4,116,545
1,199,544
4,259,628
(103,102)
(634,522)
-
-
(103,102)
(634,522)
(7,439,311)
6,297,568
(1,205,296)
4,278,155
(8,644,607)
10,575,723
Finance cost
Provision for doubtful debts
Share of profits of associates
Impairment of goodwill
Profit / (Loss) before tax
Group
Oman
30-Sep-07
30-Sep-08
RO
RO
UAE
30-Sep-07
30-Sep-08
RO
RO
Total
30-Sep-07
30-Sep-08
RO
RO
Segment assets
64,272,598
60,218,424
27,834,388
26,818,182
92,106,986
87,036,606
Segment liabilities
33,383,715
26,152,530
20,002,329
16,209,317
53,386,044
42,361,847
Page 29
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
27
SEGMENTAL INFORMATION (continued)
Oman
30-Sep-07
30-Sep-08
2007
RO
RO
Parent
Operating income
UAE
30-Sep-07
30-Sep-08
Total
30-Sep-07
30-Sep-08
RO
RO
RO
RO
(3,696,378)
8,535,200
(474,180)
676,407
(4,170,558)
9,211,607
(929,085)
(619,544)
(281,751)
(261,180)
(1,210,836)
(880,724)
(4,625,463)
7,915,656
(755,931)
415,227
(5,381,394)
8,330,883
Finance cost
(463,581)
(277,080)
(189,265)
(132,966)
(652,846)
(410,046)
Provision for doubtful debts
(233,253)
(501,993)
-
-
(233,253)
(501,993)
Impairment of investments
(112,386)
(1,143,566)
-
-
(112,386)
(1,143,566)
(5,434,683)
5,993,017
(945,196)
282,261
(6,379,879)
6,275,278
Overheads
Net income
Profit / (Loss) before tax
Parent
Oman
30-Sep-07
30-Sep-08
RO
RO
Segment assets
46,921,736
39,983,196
13,722,559
12,828,442
60,644,295
52,811,638
Segment liabilities
24,016,544
12,510,100
14,151,200
14,070,489
38,167,744
26,580,589
28
UAE
30-Sep-07
30-Sep-08
RO
RO
Total
30-Sep-07
30-Sep-08
RO
RO
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.
Page 30
Oman & Emirates Investment Holding Company SAOG
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
for the nine month period ended 30 September 2008
29
COMPARATIVE FIGURES
Certain corresponding figures presented in these unaudited condensed interim financial statements for
comparative purposes have been reclassified in order to confirm with the presentation for the current
period.