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Al Badia Cement (JSC) Annual Report – 2017
Al Badia Cement (JSC)
Annual Report – 2017
Chairman Speech
Distinguished Shareholders of Al Badia Cement (JSC)
Respected Representatives of the Official Entities
Dear Sirs,
At the beginning I would like to welcome you in my capacity and on behalf of the Board Members at the
annual meeting of Al Badia Cement Company to present the annual report including the financial results
and the final statements of 2017, as well as the remaining items on the agenda of this meeting, which
are presented for your kind approval.
Despite the great challenges imposed by the events on the company, but it managed, by God’s grace, to
proceed with work and maintain its high position in the local market. With more optimism and hope, we
look forward for a bright future for Al Badia Cement Company to continue its active contribution to the
re-construction phase of Syria and to supporting its economy.
Gentlemen,
Thanks to the effective leadership and strategic vision adopted, Al Badia Cement Company managed to
overcome all difficulties and obstacles and strengthened its policies and procedures in all sectors, which
was reflected positively on the company's performance. The company also played an important social
role in terms of tax liability and governance, and managed to provide support to the incubating
environment and charity despite the continued financial distress and low demand in the Syrian cement
market.
Following is a summary of the company's most important achievements during the year:
Security Front
The company managed to overcome the security circumstances that affected the plant site since the
tragic incident of April 2016 until the first quarter of 2017 through the development of the Security
system and re-operation during a remarkable time, resulting in overall performance improvement as of
the second quarter of last year, which coincided with a notable improvement in the security situation in
the plant’s area.
Production & Sales Plans Front
The company achieved 100% of its production plan for clinker. As for cement the company exceeded its
plan by maintaining its high position in the local market and marketing its products with the highest
technical specifications and quality conditions. The implementation rate of the adopted cement sales
plan was 109%, 40% higher than year 2016.
Financial Front
Year 2017 registered a positive turn compared to previous years, especially in terms of completion of
the work plan and financial performance of the company in addition to the positive impact resulting
from improved exchange rates of Syrian Pound against foreign currencies. These together supported the
company’s ability to improve its financial position and enhance its inventories provided that exchange
rates continues improving or maintains its current situation.
The company achieved book profits as per the "Profit and Loss and Other Comprehensive Income
Statement", of which the exchange rate differences and book settlement of the contractor's loan
composed the major part. In fact, they are unrealized profits resulting from the settlement of the
accumulated losses of the aforementioned items. The remaining portion, which represents the
company's operating profit for 2017, does not reflect the company’s actual performance since the
financial statements do not represent the actual economic values, particularly with respect to the value
of the fixed assets and the resulting depreciation at fair value.
Industrial Security, Vocational & Environmental Safety
The company continued to adhere to the standards of the industrial safety, vocational and
environmental safety applied since its establishment and developed them permanently to reduce the
environmental impact and maintain the safety of all workers of employees, contractors workers and
visitors.
Al Badia Cement Board of Directors confirms the validity of the financial statements approved by the
auditor, as well as the accuracy and completeness of the information and data contained in this report.
The Board also reaffirms smment to provide an effective control system in the company. Furthermore,
The Company’s management reiterates its commitment to implement an effective risk management
policy aimed at reducing risks that may hinder business during the next fiscal year.
Finally, we would like to express our sincere thanks and appreciation to the various official entities that
contributed to the support of Al Badia Cement Company, especially the army and the armed forces for
the effective role in enhancing security and stability and improving the security situation in the plant’s
area.
Great thanks and appreciation to all shareholders and stakeholders for their continued support to the
company, and gratitude to the staff for their efforts, dedication and sincerity in supporting the
company's progress.
Dr. Emad Al – Muhaideb
Chairman
Board members, executive management and consultants
Board of Directors
Name Position Ownership Ratio
Al Muhaidib Holding Company 29.5% (Represented by Dr. Emad Al Muhaideb) Chairman
Syrinvest Holding Company 26% (Represented by Eng. Raed Al Mudaiheem) Vice President (Represented by Eng. Gorgio Bodo) Member
Menaf S.A.S Co. 12% (Represented by Eng. Hakan Gurdal) Member
Al Fozan Holding Company 5% (Represented by Eng. Mohammed Al-Aqeel)
Mr. Ibrahim Sheikh Dib Member 4.2%
Mr. Tarek Al Zaim Member 0.1%
Executive management
Chief Executive Officer Mr. Khaled Al Sawaf
Technical Consultant Eng. Anas Al Samsaam
Plant Division Director Eng. Samir Babat
Commercial Director Mr. Anas Othman
Director of Human Resources and Administration Mr. Sameh Nashat
Finance Manager Mr. Aman Al Arnaout
Financial Controller Mr. Ahmed Kaftaro
Investor Relations
Head of Investor Relations Department Ms. Hanan Ghonnoum
Legal Consultant
Maitre Ahmed Sami Al Mamlouk
Auditor
Mr. Mohammed Saleh Kanj
Tax Consultant
Mr. Mustafa Awni Zakia
Board of Directors' Profile
According to the company’s Article of Association Al Badia Cement Board of Directors consists of seven
members, which are elected and approved at the General Assembly meeting held on April 18, 2016. A
new Board of Directors was elected for the third session, which will end in the year 2020. Following is a
summary of Al Badia Cement Board of Directors Members.
Dr. Emad Al-Muhaidib - Chairman of the Board
Dr. Emad occupies the position of Vice Chairman of the Board of Directors of Al Muhaidib Group and the Chairman of Board of Directors of Al Muhaidib Contracting Company. He also has a number of positions in the Boards of Directors of a lot of industrial and commercial companies in the Kingdom of Saudi Arabia and abroad, such as Middle East Paper Company (MIPCO), the Waste Collection and Recycling Co (WASCO), United Feed Co, Masdar Building Materials, United Mining Investment and Del Monte Saudi Arabia. Dr. Emad is a holder of Business Degree from King Saud University since 1979, and was awarded Honorary Doctorate from Lisbon University – Portugal in 2013.
Dr. Fuad Al Saleh
Chairman of the Executive Committee of the Board of Directors
Member of the Remuneration Affairs Committee of the Board of Directors. Dr. Fuad passed away on February 10, 2018. At the Board Meeting on March 14, 2018, Eng. Raed Al Mudaiheem was appointed as Vice Chairman. Syrinvest appointed Mr. Gorgio Bodo as its representative to the Board of Directors byr its letter dated 14.03.2018. Eng. Raed Al – Mudaiheem
Chairman of the Remuneration Affairs, Compensation Committee and the Executive Committee
Enjoys engineering and administrative experience for over than 25 years; he has occupied several management positions in various sectors such as Energy, Water and Trade & building materials industry. In addition, his experience concentrated on Trade and Industry of Iron and Cement Sector, in particular. He takes part in the membership of several Boards of Directors of commercial and industrial companies. Eng. Raed has an M.A. of Electrical Engineering from King Saud University, in Riyadh, since 1992.
Eng. Hakan Gurdal
Member of the Executive Committee of the Board of Directors Mr. Gurdal has more than 24 years of experience in engineering and management field. As he held number of senior management roles in several cements companies in Turkey such as “Canakkale Cement”, “Akçansa” and “Sabanci Holding . In addition; Mr. Gurdal was in-charge since early 2016 in managing HeidelbergCement of Africa-Eastern Mediterranean Basin Group area, and he is currently a member of HeidelbergCement Managing Board. Mr. Gurdal holds a Bachelor degree in Mechanical Engineering from “Yildiz” Technical University in Istanbul and MBA in International Management from the University of Istanbul.
Eng. Mohammad Al – Aqeel
Chairman of the Audit Committee of the Board of Directors Eng. Mohammad Al Ageel spent 12 years in Al Fawzan Holding Company where he held a lot of managerial and executive positions. He presently occupies the position of CEO of operations in Al Fawzan Holding Company. He was appointed a credit consultant in the Saudi Industrial Development Fund in the year 2003, in addition to being a Board Member of many companies, such as Farabi Petrochemicals Company, Midad Holding Company, Amwal International Company "AMWAL" and Nesaj Real Estate Development Company. Eng. Mohammad Al Ageel is a holder of Bachelor of Science Degree in Engineering Systems from King Fahd University for Petroleum and Minerals in Saudi Arabia since 1992..
Mr. Ibrahim Sheikh Dib
Member of the Remuneration Affairs Committee of the Board of Directors One of the founders of Noor Trading Company which works in building, constructing, import & export fields as well as in the field of feeder trade. Mr. Ibrahim contributed to the establishment of Bank of Syria and Overseas and held the position of Member of Bank of Syria and Overseas Board of Directors for three consecutive sessions. Mr. Ibrahim participated with Arope Insurance Lebanon to establish Arope Syria. Currently Mr. Ibrahim is Board Member at Bank of Syria and Overseas Board of Directors. Mr. Ibrahim graduated from Damascus University.
Mr. Tarek Al Zaim
Member of the Audit Committee of the Board of Directors Mr. Tarek is founder and board member of Al Zaim Holding Company, Syrian Arab Insurance Company and the United Grain Company, Mr. Tarek has approximately 18 years’ experience which has spent them mostly in the industrial, commercial and real estate management field. He has contributed to the establishment and management of numerous companies such as the Modern Company for Cables and Plastic Industry in Lebanon and the Syrian Saudi Company for Olive Products. Mr. Tarek has participated in managing and planning the project of Blue Lagoon – Aleppo, also he supervised the establishment and operation of the silos of the United Grain Company in Tartous. Mr. Tarek holds a Bachelor degree in Business Administration from King Saud University in 1998 in Riyadh.
Profile of Executive Management
Mr. Khaled Al-Sawaf
Chief Executive Officer of Al Badia Cement Appointed as Executive Project Manager for Al Badia Cement in September 2007, later was promoted to the position of Chief Executive Office in September 2009. Through his leadership to a distinguished team, he established Al Badia Cement Company and managed a successful issuance of the company's shares, in addition to providing required financing, and completing the project according to the time plan, ensuring the continued operation during the period from 2011 to date. He has long experience in Industrial Management, since he has contributed to the development of numerous projects, products and solutions in the Middle East along with concentration on creating work teams of high performance levels and ability to complete financial and operational plans. Holder of a BSc degree of Business Administration with a Master degree in Quality Management from Wollongong University - Australia.
Eng. Mohamed Anas Al Samsaam
Technical Consultant
Joined Al Badia Cement early 2009 to become the Technical Consultant for the company. He has over 35 years of experience in the cement industry. He started his career in 1973 in cement factories in Syria and served as General Manager of a cement company. Also he served as Technical Affairs Director in the Central Administration of the General Establishment for Cement, which manages cement companies sector in Syria. He worked as an expert consultant to the Arab Union for Cement Industry in favor of some cement plants in Arab countries. He holds a degree in Electrical Engineering from the University of Sofia in 1972
Eng. Samir Babat
Plant Division Director Joined Al Badia Cement in 2011 and was promoted to the position of Plant Director in 2013. He enjoys over 31 years of experience in cement industry. He started his career in 1986 in several cement plants and was appointed as Manager of one of Mass International Corporate for Investment projects in Sudan. He holds a degree in electrical engineering from the University of Baghdad in 1985.
Mr. Anas Othman
Commercial Director
Joined the management team of Al Badia Cement Company in 2013, where he held the position of Sales and Marketing Manager, and later held the position of Commercial Director in 2015. He held a number of managerial positions during his career which exceeds 22 years in the industrial and commercial sectors, mainly at metal industryand trade. Holds a high diploma in Business Administration.
Mr. Sameh Nashat
Director of Human Resources and Administration
Has held several positions since the beginning of his professional career in 1998. Enjoys more than 15 years of experience in the cement industry, the most important of which was his joining during the period 2003-2010 Suez Cement Company - ITC and his active contribution to the development of the commercial sector in Al Badia Cement Compan;, in addition to establishing companies in the fields of transport and quarrying and creating a distinguished network of professional relations in the cement industry. He re-joined Al Badia Cement Company staff in 2017 as Director of Human Resources and Administration. Holds MA in International Development Management, Polytechnic University, Italy.
Mr. Aman Arnaout
Finance Manager
Joined Al Badia Cement Company in 2011, where he served as Chief Accountant and was recently appointed as Finance Manager of the Company. He has over 15 years of experience in the financial domain, through which he developed and introduced many accounting policies and documentary courses and actively contributed to the establishment of the Financial Sector in the company and all procedures for obtaining the syndicated bank loan and development of tax compliance policies. Holds a degree in Economics from Damascus University in 2003.
Mr. Ahmed Kaftaro
Financial Controller
Joined Al Badia Cement Company in 2008 as Project Financial Controller, where he was in charge of financial monitoring of the project implementation and took part in establishing the financial department and setting up the budgets and fiscal policies and designing the ERP system. He was recently appointed as Financial Controller. Enjoys experience of almost 18 years in the field of auditing, financial management and accounting functions. He participated in several workshops in the field of budgets efficiency and business planning. Holds of a degree in Economy from Damascus University in 2001.
Our Mission
To achieve sustainable benefit and growth for all stakeholders
by being committed to providing the necessary support and
resources and maintaining the quality of our products and
performance.
For our employees
Provide safe and stable work environment and supporting capacity and skills development along with
equitable income and growth opportunities.
For our customers
Achieve customer satisfaction by providing fair opportunities, respecting agreements, achieving mutual
benefit and providing the highest quality products and services.
For our shareholders
Gain remunerative returns for shareholders by safeguarding security and stability of the company and
continuous growth.
For our society
Proceed with commitment to the principles of transparency, governance, laws and regulations, protect
environment, provide employment opportunities and support national economic activities to achieve
the objectives of the company and stakeholders and enable the possibility of involvement in a noble
community role.
Organization Chart
Board of Directors
Chief Executive Officer
HR & Admn Affairs Sector
HSE Dept.
HR Dept.
Finance Sector
Accounting Dept.
Treasury Dept.
Costs, Control & Budget Dept.
IT Dept.
Internal Audit Dept.
Commercial Sector
Sales & Marketing Dept.
Supply & Procurement Dept.
Stores Dept.
Plant Sector
Elect. Maintenance Dept.
Quarries Dept.
Quality Dept.
Production Dept..
Mech. Maintenance Dept.
Projects Management
Preventive Maintenance Dept.
Legal Affairs
& Govt. Relations
Civil Engineering Dept.
Security Dept.
Admn Affairs
IR
& Communication
Board of Directors Report
For the year ending 31st December 2017
Company Profile
Al Badia Cement was founded in 2006 in Syria, as a Joint Shareholders Company, by a group of investors at an investment estimated cost of 400 million US dollars. The first production line with an annual capacity of 1.6 million tons of Portland Cement was completed, with the possibility of future expansion for the second line, to achieve the company’s total capacity of more than 3 million ton/year after the completion of the second production line. The plant which began production during the year 2011, was established by an international contracting company specialized in cement factories establishment. The key equipment were imported from prominent European companies, to ensure the highest levels of product quality, energy save and environmental protection in accordance with local and international standards. The Company has adopted policies to ensure the highest professional standards of safety and emission control, and work on reducing the environmental impacts along with the commitment to provide job opportunities, training and rehabilitation of national staff of highly qualified and highly skilled. Al Badia Cement plant is characterized for its location close to the capital Damascus, and the strategic and important location that enables quick access to most cement markets in Syria, particularly the southern, eastern, central and coastal regions. In addition to the good reputation of the company’s product brand of "Al JAMAL”, and prestigious position among senior traders of building materials, ready-mix and block plants. Governance
Governance is a group of rules and procedures under which the company is managed and controlled, by organizing relations among Board of Directors, executive management, shareholders and all stakeholders, as well as the company’s social and environmental responsibility. Thus, governance system in the company means maintaining the shareholders' equity and ensuring treating their various categories fairly, with concentration on the requirements of information disclosure and transparency, as well as responsibilities and duties assigned to the Board of Directors. This includes the systems, policies and procedures that ensure suitable accountability and integrity in conducting the company’s business. The Board of Directors works on maintaining the highest standards of ethical behavior in applying governance principles, aiming at performing its full responsibilities before the shareholders and serving them with integrity, honesty and morality. The basic principles of the governance system applied in Al Badia Cement Company are briefed in the following:
1. Shareholders' Equity The company gives great importance to the transparent dialogue with shareholders, whether companies or individuals. A separate unit for the shareholders' relations at the company represents
the main communication channel between the company and the shareholders, coordinates the General Assembly meetings in an organized way in due times and follow up the developments related to the Shareholders' Registry and facilitate practice of their rights and obtaining information all through the year.
2. Disclosure and Transparency Industrial companies are considered as the important sectors in any country, based on the trust in investment through their intimate relation with the regulatory and governmental bodies, where sufficient disclosure helps the decision takers and the interested parties evaluate the financial position, works and accomplishments done by the company. Al Badia Cement Company commits to the verdicts issued by Syrian Commission on Financial Markets and Securities related to disclosure about the sensitive and important information and dissemination on time according to the requirements of Disclosure System. The company works on keeping the shareholders informed continuously through the Ordinary & Non Ordinary General Assembly Meetings. It also gives the chance to the shareholders to practice their right of requesting any inquiry about the company situation and its business.
3. Board of Directors and Board Committees
The Board of Directors is responsible for providing the Executive Management with clear plans and policies by which it works to achieve the establishment's goals, provided that the Board takes into consideration upon setting these plans all the political, economic and legal alternating effects. This means that there is constant assessment, alternation and development of those plans. The governance system in the company supports directly the Board to take over the strategic direction of the company and the effective control over the executive management work. Moreover, the company's reliance on the principle of authority delegation and powers through the formation the committees emanating from the company’s Board of Directors would promote the principle of governance in taking important and strategic decisions in line with the company's principles and the shareholders' will and the related parties.
4. Separation of Responsibilities and Powers of the Chairman of Board and the Chief Executive Officer: The company is keen on separation of responsibilities and powers all the time so as two different persons hold the positions of the Chairman of Board and CEO in the company, where Dr. Emad Al Muhaidib takes up the position of the Chairman of the Board, whereas Mr. Khaled Al Sawaf assumes the CEO in the company and has authorities delegated to him by the Board to run the company's business and operations including the application of strategies and decisions issued by the Board of Directors.
5. Committees emanating from the Board of Directors
In support of the company's Board of Directors to the principle of governance of issued decisions, the Board has formed the following committees according to the company's need and conditions in order to be able to perform its duties efficiently:
Remuneration & Compensation Committee
Internal Audit Committee Executive Committee
Eng. Raed Al-Mudaiheem Chairman
Eng. Mohammed Al-Ageel Chairman
Chairman (vacant)
Mr. Ibrahim Cheikh Dib Member
Mr. Tarek Al Zaim Member
Eng. Hakan Gurdal Member
MR. Gorgio Bodo member MR. Gorgio Bodo member MR. Gorgio Bodo member
Internal Audit Framework
The main goal of the internal audit procedures is to maintain the assets and funds of the company,
evade any fraudulence, ensure the company’s financial records accuracy, and assert that processes
have been done according to rules, regulations and laws.
The company has set internal audit rules through publishing policies and procedures related to production and administrative operations process by adopting information technology, the matter which effectively contributed to avoid functioning, operational and financial blunders and prevent any fraudulence. Supervision on internal audit framework is carried out by Committee of Internal Audit and Board of Directors through discussing remarks related to internal audit. Hereby is an elaboration on the main factors of internal audit framework followed by the company:
Appropriate organizational structure
For the purpose of application of strategic management and the smoothness of information flow, achievement of balance in managerial centralization and decentralization, and bridging the administrative gap between the executives and employees, which contributes effectively in auditing and specifying powers and liabilities.
Risk Management
Internal Audit Committee works in coordination with the company administration to manage probable risks on a daily basis, seeking to maintain the activity of the work, and supervise the management of health risk and job-related safety as well as financial and operational risks for
the sustainability of the company. Also audit the implementation of the administration recommendations regarding the surrounding risks and supervise the developments related to the facility and staff safety, taking suitable decisions and recommendations to avert all kinds of risks.
Internal Audit
Internal audit activity is considered as one of the pillars of the company's governance application and reinforces the internal audit framework due to its independent and objective role in directing operations towards success and providing information to the management on all levels to help implementing its strategy appropriately. Internal audit activity aims at illuminating audit system weakness, in addition to helping the company management execute its liabilities effectively through proving it with analysis, recommendations, advice and competent information in inspecting the different activities in the company.
External Audit
External auditor helps the shareholders by performing his obligations, checking and approving the authenticity of the company’s financial statements, where the Internal Audit Committee emanating from the Board of Directors takes over the tasks of the External Auditor and check the results of his work as for reliability and fairness of the financial statements according to the international accountability standards and the international financial reports preparation standards.
Our vision
Quality of Excellence Our vision is derived from our deep understanding of the importance of “Excellence” achievement in everything we do, in order to gain the appreciation of all our clients through the quality of excellence on the level of products, services, work conditions or whatever we offer, such as opportunities and possibilities for attraction and sustainability.
Investor Relations Department
Al Badia Cement pays special attention to maintain effective relations with its shareholders,
therefore the company's management has allocated an independent specialized department for
its shareholder affairs. The department’s main duty is providing all available information related
to shareholders and answering their inquiries. The Investors Relations Department applies
corporate governance standards to communicate with shareholders by applying transparency,
disclosure and fair treatment principles.
Al Badia Cement Company is committed to holding annual General Assembly Meetings
according to Companies Act issued by Legislative Decree No. 29 of the year 2011. The meeting
discusses and approves the company’s Board of Directors Report, including the annual financial
statements. The company’s Annual Report is made available on the company's website one
week before the General Assembly Meeting, all shareholders have the right to attend the
meeting and vote on its decisions.
Investor Relations Department welcomes the company’s shareholders inquiries and suggestions at the following address: 71, Plaza Center 86, Tanzem Kafarsouseh Damascus Syrian Arab Republic TEL +963 11 9798 Ext. 12 FAX +963 11 2140095 E-mail: [email protected]
Statement of the company’s main shareholders
The following statement shows senior shareholders of the company’s shares and number of shares
owned by each of them:
Name Nationality 2016 2017
No. of shares Percentage No. of shares Percentage
Al Muhaidib Holding Company
Saudi Arabia 28.792.000 29.5% 28.792.000 29.5%
Syrinvest Holding Company Dutch 25.376.000 26% 25.376.000 26%
Menaf SAS Company French 11.712.000 12% 11.712.000 12%
Al Fozan Holding Company Saudi Arabia 4.880.000 5% 4.880.000 5%
Mr. Ziad Al-Zaim Syrian 7.222.400 7.4% 4.392.000 4.5%
Mr. Ibrahim Cheikh Dib Syrian 4.100.280 4.2% 4.100.280 4.2%
Al Zaim Holding Company Syria - - 2.830.400 2.9%
Statement of number of financial securities owned by Parties with relationship to the Company
Name Description Nationality No. of shares
2016 2017
Dr. Emad Al Muhaidib representative of Al Muhaidib Holding Co.
Chairman Saudi
- -
Dr. Fuad Al Saleh representative of Syrinvest Holding Co.
Vice Chairman Saudi - -
Eng. Raed Al Mudaiheem representative of Syrinvest Holding Co.
Board Member Saudi - -
Eng. Hakan Gurdal representative of Menaf S.A.S
Board Member Turkey - -
Eng. Mohammed Al Ageel representative of Al Fozan Holding Co
Board Member Saudi - -
Mr. Ibrahim Cheikh Dib Board Member Syrian 4.100.280 4.100.280
Mr. Tarek Al-Zaim Board Member Syrian 97.600 97.600
Mr. Khaled Al-Sawaf CEO Syrian 10.744 10.744
Wife of Board Member Eng. Raed Al Mudaiheem
Related party Saudi 99.188 99.188
Wife of CEO Related party Syrian 2.000 2.000
Development of Human Resources
Al Badia Cement pays great care and attention to its Human Resources based on its belief that the work
team's ability to meet challenges is the basis for its success. The company works continuously on
motivating employees and ensuring the best work conditions.
One of the most important challenges faced by the company is the continued drop out of manpower
and the difficulty of replacing qualified workers, especially during the exceptional circumstances that the
plant faced during the year 2016. However, the company has worked on meeting this challenge through
an effective recruitment plan to attract the best expertise and young talents available, in addition to
supporting rehabilitation processes.
The company adopted a training plan within the available possibilities to develop the capabilities of the
staff through a number of internal training courses, in addition to seeking the assistance of some foreign
companies specialized in the cement industry to develop work mechanism.
The number of employees in 2017 was 342 full-time workers in addition to providing more than 500 job
opportunities through the company's contractors and service providers. The company also implemented
income and compensation policies to support its employees to meet the high cost of living, which was
reflected positively on improved performance.
Overview of the Syrian cement markets
Cement markets witnessed in 2017 a slight improvement compared to the last four years affected by
the return of stability in a number of areas and the accompanying interest of the government to start
the development of reconstruction plans and to support the procedures of re-operating stopped plants,
especially in the cement industry and use of oil and gas fields that could be invested.
As the demand for cement continues to decline, with the surpluses in production compared with
domestic consumption rates and the general recession in construction and real estate market, cement
consumption rates in 2017 are still significantly lower than in 2011-2012.
Cement sales
Al Badia Cement Company managed to maintain its share of cement sales in the local market despite
the challenges faced in terms of security and logistics in the areas surrounding the plant during the year
2017.
Al Badia Cement Company has maintained its strong competition in the local markets, and acquired the
satisfaction of the consuming activities of cement, especially maintaining the largest share of the
Patching Plants (ready-mix) market through the conformity of its products to the standard specifications
adopted locally and internationally and upgrading the level of its services.
The below table shows the percentage of Al Badia Cement Company's full production and sales plan for
the year 2017:
Clinker Cement Grinding Cement sales
2017 Plan (thousand tons) 600.000 650.000 650.000
Actual execution (thousand tons) 599.244 717.151 705.892
Execution rate 100% 110% 109%
The number of customers who have bought more than 10% of the company's sales of bagged and bulk cement reached 5 customers.
The company's application of quality standards
Al Badia Cement Company is committed to achieve the best quality standers related to its product
according to Syrian specification No. 3800 of 2015 in compliance with the European standard No. 1-197
of 2000.
The laboratory tests are carried out for the raw material in all production stages and up to obtaining the
final cement product through the direct current control of these materials to insure the product quality by
using the laboratory analysis equipment namely X – Ray analyzer . All physical and chemical tests of the
final product are carried out at the central laboratory which is properly equipped with all testing and
analyzing equipment.
To insure the quality of products from the accredited public authority, the company cooperated with the
Center of Research and Industrial Tests under Ministry of Industry by signing an agreement and memo of
understanding to carry out tests on random samples of cement, through periodic field visits made by the
center employees to carry out the required test. In addition, the center carries out periodic tests to all
analyzing and laboratory equipment at the central laboratory of the company.
Environmental standards
The company is committed to apply the standers of Syrian Environment Law No. 50 and the European
Law on Safety No. EC/1/2008.
Security and Vocational Safety
The company continues to apply health and vocational safety standards as the company enhanced
performance levels of security and safety measures related to health and vocational safety, and arranged
for providing all needs and requirements for the safety of workers.
The plant contains a clinic furnished with the latest medical equipment needed to handle emergencies, in
addition to the existence of a comprehensive fire extinguishing system that is continuously maintained
and preserved so as to retain its full readiness.
The standard record of the total working hours without injuries that led to total disability or death during
the year 2017 amounted to /2.746.948/ work hours at the plant, the reiterating lost-time work injuries ratio
(LTI) was zero injuries per one million work hours, since no total-or-partial disability work injury was
recorded during the year 2017. Thus, the number of working days without any death, permanent or
partial disability or time-wasting accident is 1188 days
Procurement
Due to the difficult circumstances that the company experienced over the previous years, the negative
effects were very clear on all levels, especially the economic ones, where the volume of procurement
operations and the number of suppliers decreased significantly due to the decline in the volume of work
and the accompanying fluctuation in exchange rates as well as the difficulty of import process and
financing imports as most of external suppliers are committed to applying sanctions and economic
embargo imposed on Syrian companies which led to the necessity of the company in some of its
purchasing operations to rely on specific suppliers making up 10% or more of its total purchases. These
suppliers meet the company's minimum requirement to ensure continuity (such as fuel and diesel),
which are completely purchased from the Syrian Company for Storage and Distribution of Petroleum
Products at its specified price, in addition to coal, which was supplied by only one supplier.
Our Values Excellence in performance through Integrity, Superiority, Teamwork and Mutual Respect
Government or international organizations decisions that have an impact
During the year 2017, no new government decision was directly reflected on the company's business.
However, the continued implementation and activation of some previously issued decisions had some
positive impacts as follows:
- Cement sales prices have improved in the public sector
- Continue to implement the decision on banning import of cement
However, the company was not able to take full advantage of these decisions due to the failure of in
obtaining foreign exchange to settle loans in addition to the economic embargo measures taken by
foreign banks, which hindered banking operations and the ability to import production supplies
smoothly and regularly.
Description of any government protection or privileges
Pursuant to the provisions of Article No. /7/ of Disclosure law and instructions No. /3943/ issued by the
Syrian Commission on Financial Markets & Securities which stipulates the need to describe any
government protection or privileges enjoyed by the company or any of its products under the laws and
regulations or other, and description of any patents or franchise rights acquired, we present the
following:
Land and quarries
The General Establishment of Geology and Mineral Resources of Ministry of Oil granted Al Badia Cement
the right to invest the leased land, which includes the quarries area, the plant land and the surrounding
area by means of a fifty year contract subject to extension.
Deregulation of cement and distribution
Investment Office - the Supreme Council for Investment note No. 116/1/20 dated 22.01.2006 stated the
approval to liberate the price of cement produced by the private sector, as well as liberalization of
marketing the products of the private sector of cement in the local market.
Tax Exemption
Due to the fact that the Al Badia Cement (JSC) is covered by the rules of the Investment Law No. 10 of the year 1991 and its amendments by virtue of the decision of the Supreme Council for Investment No. 10/MS, dated 28/1/2004, therefore it enjoys tax exemption of paying the income tax for five years starting from the actual production or investment date. The mentioned tax exemption period has been extended for two additional years by the decision of Syrian Investment Agency Board of Directors No. 1703, dated 26/11/2015 so the entire tax exemption period is seven years instead of only five years. Therefore, the company is to be exempted from paying income tax until 15/5/2018. Logos, names and trademarks of Al Badia Cement
The company’s logo, trade mark “AL BADIA“, the trade name for cement “AL JAMAL” and the industrial pattern of “AL JAMAL” drawing are registered as trade names and marks by the Trade Property Protection Department under the name of Al Badia Cement (JSC) in the Syrian Arab Republic.
Company’s achievements during 2017
Operation and Production Process
The company managed to achieve its production plans and continue to operate and maintain the entire production line especially periodic, preventive, general maintenance and rehabilitation of all production line sections and power generation plant, overcoming all difficulties and obstacles faced during the year, depending on its national local staffs without the aid of any foreign experiences.
The company achieved high performance standards as for electric power and fuel consumption indicators in operation processes of the year 2017, in addition to the high quality clinker, which was reflected positively in the grinding efficiency and improve the quality of the produced cement. Al Badia Cement managed during the year 2017, to secure all the raw materials and import of spare parts required for the continuity of operational and production process, surpassing all obstacles of caused by high foreign exchange rates, scarcity of the local markets and limited number of international companies willing to deal with the company due to the export embargo imposed on Syria.
Marketing Operations & Communication with customers
During 2017 the company managed to fulfill the need of the cement market by relying on a distinctive group of cement distributors who enjoy good commercial reputation, and are capable of overcoming difficulties of transportation, storage and selling. The company managed to implement its 2017 annual sales plan at about /109%/, by providing the required technical support to its customers and distributors, and following up their marketing activities. In addition to active and expedite adherence to market variables.
The Company’s Strategy and Future Plan
Al Badia Cement Company developed an integrated action plan through which to clarify the company's
vision and strategy during the year 2018 and formulated work objectives for all sectors and departments
according to the following:
Continue to ensure readiness of the plans, policies and practices necessary to achieve the
security and safety of all workers in the company and to come out with a record free from any
deaths or serious work injuries.
Ensure that the company continues to comply with applicable laws and regulations, principles of
governance and transparency, and evade environmental impacts.
Protect the company's assets and resources.
Achieve production and sales plans for clinker and cement with continuous development of
operations, improve performance standards and increase work efficiency.
Manage the company's resources efficiently and economically, combat waste and reduce all
non-productive costs while providing reasonable storage levels for strategic raw materials, fuel,
maintenance supplies and spare parts.
Proceed with technical studies and activate as much as possible projects for increase of
productive capacity, rehabilitation of the affected sections and be ready to cope with any future
needs and contribute to support re-construction process.
Enhance the company’s competitive position in the Syrian market in terms of excellence in
quality of products and services and raise the added-value in order to increase market’s share.
Maintain good reputation and excellent relationship with all customers including suppliers,
merchants, contractors and service providers.
The company has also identified the main challenges that it might face during the year 2018 to be
followed up and raise the company's ability to respond to any emergency, they are summarized as
follows:
Limit the negative effects of any unplanned interruptions or stoppages by providing policies and
mechanisms that ensure the protection of individuals, assets and proceed with readiness of
production line in the face of any emergency events.
Maintain the company's ability to meet its payment obligations to banks and lenders.
Emphasize the company’s maintaining its priorities in adhering to strict governance policies,
product quality and employee safety, work to find appropriate ways to improve profit margins
and control costs.
Develop appropriate mechanisms to overcome supply difficulties under economic sanctions.
Develop appropriate mechanisms to ensure the availability of competencies and skills required
to maintain the highest standards of quality, technology and professionalism
Some of the Important Events witnessed by Company during 2017
Ordinary General Assembly Meeting May 2017 The General Assembly meeting was held on May 2, 2017, where the Board of Directors Report and the
Financial Report & Final Budget of the operations of year 2016 were recited; in addition to clearance for
the chairman, members of the Board of the Directors and executive management for year 2016.
For more information, please check the following "Excerpts of Al Badia Cement Ordinary General
Assembly Minutes of the Meeting".
Obtain founders loan to support settlement of bank loan installments
The Company obtained loans from the founding shareholders as a result of the company's inability to
settle the syndicated loan installments in foreign currency in March, June and September 2017. These
Loans will be Payable after payment of all the company's obligations at an interest that was approved by
the Board of Directors.
Excerpts of Al Badia Cement Ordinary General Assembly Minutes of the Meeting for 2017
Upon invitation of the Board of Directors of Al Badia Cement held its Ordinary General Assembly
meeting on the May 2, 2017 in order to discuss all points set out in accordance with the Companies Law
promulgated by Legislative Decree No./29/ for the year 2011 and to discuss and ratify the agenda of
Ordinary General Assembly.
Following is the summary of the most prominent decisions made during the meeting:
First: Approval and authentication of all details mentioned in the report of the Board of Directors and
the financial report for the period between 1st January 2016 to 31st December 2016.
Second: Approval and authentication of elect the legal auditor Mr. Mohamad Saleh Kanj as the
company’s auditor to practice his tasks according to the rules of the Companies Law No. 29 for the year
2011 for one year 2017. The Board of Directors has been assigned to set his compensations.
Third: Approval on the Board of Directors decision regarding the company's obtaining a loan from the
founding shareholders shall be repaid after the company pays the entire consolidated bank loan and
when its financial position improves. The company’s Chief Executive Officer has been delegated full
powers to undertake any future borrowing from the founding shareholders, restructuring of the long-
term syndicated bank loan obtained in two currencies (Syrian pound and US dollar) under the Facility
Agreement signed with the lending banks on 14/4/2011, or request restructuring only one part of the
loan at the time deemed appropriate and in compliance with the company's interest.
Fourth: Approval and authentication of the clearance of the Chairman and members of the Board of
Directors as well as the Executive Management for the company's work for the period from 1 January
2016 to 31 December 2016.
Description of the Risks Faced by the Company The risks faced by the company are classified into four risks categories as follows:
1. Strategic Risks
The current political and security circumstances have significantly affected the company’s
performance during the last years, which was realized basically in the severe decline of cement
demand as well as the security situation in the plant’s surrounding area that led to negative
repercussions on the company's performance. During the year 2017, the company continuously
monitored the indicators of these risks and ensured that the procedures, plans, policies and security
measures taken at the logistic and technical levels are fully prepared to limit the impact of these
risks and ensure the protection of the company's assets and safety of employees as an absolute
priority, and to evade stoppage in the production and sales operations.
2. Financial Risks
Cash flows and liquidity risk
It is characterized in the risk arising from the company’s failure to meet its short-term commitments.
Weak sales operations and high production costs especially those related to import, fuel and logistic
services as well as inflexibility of cement prices in Syria so as to match the changes of these factors in
addition to the alternation in the exchange rates led to the company’s being subject to necessary
cash flow risk.
The Company has developed the appropriate mechanisms for managing and optimizing the cash
flow through the preparation of the necessary lists for forecasting and early warning and taking
measures to mitigate the impact of these risks and maintain an appropriate reserve of the
company's cash balances with the banks in addition to taking a number of procedures to provide the
necessary liquidity to meet all the obligations of the company on time with the support of the
founding shareholders.
Foreign exchange risks
They are characterized in the risks related to the exchange rate of the Syrian pound against foreign
currencies required for the company’s financial transactions for payments of imported materials
required for production in foreign currencies. They also affect the assessment of assets and liabilities
of a monetary nature in foreign currencies. The low exchange rate of the local currency is reflected
negatively on the company due to inability of cement prices to cope with the rapid changes.
Risks of Changes in Interest Rates
They are characterized in the changes in interest rates on the financial liabilities subject to variable
interest rate, as well as assets producing interests. The company has prepared a sensitivity analysis
report which measures the effect of a change in interest rates on the company’s financial position, in
order to reach a pre-prediction on the amount of this impact and to take possible measures to
reduce it. The sensitivity analysis is presented in the Financial Statements.
3. Operational risks
These risks are summarized in the risks related to the company’s operational process, protection of
the company's staff, assets, information systems and communication.
Risks of lack of some basic raw materials needed for production
The Company worked on reducing the impact of these risks by continuously seeking to raise the
stock of these materials for quantities sufficient for longer periods of time, despite the heavy
financial burden on the company.
Risks of expertise manpower dropout in the company
The company adopted necessary plans and procedures to reduce the dropout rates and labor
turnover while working on finding replacements with experienced and competent both from inside and
outside the company and providing them with adequate training and capacity building.
Risk of Information and Communications Technology
The risk of losing contact with the plant is considered a major obstacle to production management,
sales and communication with all parties involved. In order to mitigate the impact of these risks, the
company established and activated four different communication systems, ensuring continuity of
communication and control in a complete and effective manner.
The company’s ability to maintain and raise the readiness of the information technology system,
both in terms of the infra-structure readiness, and maintaining the efficient performance of the ERP
system, is considered one of the most important challenges that the company managed to develop
practical and competent solutions to minimize its risks.
Risks Related to Security, Safety and Insurance
The current circumstances that the country is going through in general and Al Badia Cement plant
surrounding area in particular, and the previous incidents that took place, in addition to non-
availability of reinsurance possibilities for the Syrian insurance sector it was not possible to obtain
reasonable and feasible insurance solutions to cover all risks. Including the risks of fire, theft and
natural disasters.
Therefore, the company worked on enhancing security and safety procedures and developing them
logically and technically for the purpose of protecting its personnel and assets, developing its
firefighting systems and conducting maintenance operations on a regular and continuous basis, in
addition to forming a team responsible for emergency and evacuation operations, and training
employees to respond to emergency cases and carrying out periodic tests to ensure the effectiveness
of actions taken.
Description of the Company’s Subsidiaries, nature of their work
There is no subsidiary to Al Badia Cement (JSC), except for Emdad Trade Offshore Company, which was
established in Lebanon with a capital of 30 Million Lebanese pounds (around 20 thousand US Dollar),
where Al Badia Cement (JSC) owns 99% of the shares of Emdad Trade Offshore Company. The main
purpose of the company’s establishment is to support the operations of supply and logistics of Al Badia
Cement (JSC).
Until the end of 2017, Emdad Trade Offshore Company did not have any commercial or practical activity,
thus there are no financial results for the company’s work.
Amount of Audit fees for the company and its subsidiaries
As for the auditor's fees of the company's accounts, the legal auditor Mr. Mohammad Saleh Kanj, the
fees have been identified at the amount of /2,000,000/ SYP only two million Syrian Pound for
performing audit of the accounts of Al Badia Cement for the year 2017. As for the fees for the
company’s subsidiaries up to the date of preparing this report no auditor was appointed for the year
2017 for Emdad Trade Offshore.
Amount of financial advisory fees
As for the financial advisory fees, Deloitte & Touche (M.E.), Tamimi & Al Samman Co., the amount of
/21,500,000/ SYP twenty-one million, five hundred thousand Syrian Pound for the following tasks during
2017:
1- Financial advisory
2- Audit service for resources planning system ERP
3- Reports for managerial purposes
Benefits and Compensations of the chairman and board members of the board of directors, senior
management and auditor
Based on the disclosure instructions concerning the benefits and bonuses paid to the Chairman and
Board Members, we would like to indicate that the Chairman and Board Member, including the Board
Members based outside of Syria, did not get any compensation or bonuses, benefits or allowances for
travel and accommodation for attendance of Board meetings or their management of the company’s
affairs, during 2017.
With respect to benefits and bonuses paid to senior management members, which is represented by the
wages and salaries, fees, bonuses and travel expenses they receive, the sum of these amounts are
included in the notes of the audited financial statements of the clarification related to financial
statements under the heading of Statement of Profit or Loss and other Comprehensive Income.
Statement of contributions and grants
In 2017, Al Badia Cement Company contributed a number of donations to authorized charity
organizations to contribute to social responsibility towards the country and its children despite the hard
financial circumstances that the company is going through.
Statement of contracts, projects and agreements held by the company
The company signed a contract with AROP Syria Company aimed at providing health insurance services
to the company's employees. The contract value amounted to/ 56/ million Syrian pounds for one year as
of 17/11/2017. This was after soliciting offers from local insurance companies and studying them in
terms of conditions and prices. The offer by AROP Syria (in which Mr. Ibrahim Cheik Dib is a board
member) received the highest rating.
Analysis the Company’s Financial Position
In analyzing the statement of profits and losses and other comprehensive income, after excluding the
exchange differences and the effect of the final settlement with the Chinese construction company
(please see the paragraph "Financial impact of operations of a non-recurring nature"), the company
achieved book profits of about five billion Syrian pounds .
The company's achievements during 2017 of maintaining the company’s share of the local market and
the tangible increase of net revenues and book profits, have been achieved despite the following
complications:
The severe decline on cement demand in the local markets, in addition to inability to export.
Increase of offer to demand on cement forced the company to be committed to the selling
prices adopted by the General Establishment of Cement in spite of :
A. Cost discrepancy of power and electricity on our company due to lack of support, that is made available for the public sector companies.
B. High cost of security measures compared to the public sector companies that exist in safe areas.
C. Cement selling prices in the local market do not match the high prices of the materials that are linked to currency exchange prices, and are not up to the profit margins available to selling prices in the neighboring countries.
High production costs sharply, in addition to the burdens of logistical difficulties and the severe
effects of economic sanctions.
The company has concentrated during the previous period on securing the safety of the personnel and
protecting the plant’s fixed assets, as well as filling up the raw materials stores needed for production
and necessary spare parts for maintenance in order to ensure the continuity of the production process.
Following are some of the financial rates that focus on some fiscal position aspects of the company's
financial position as of 31/12/2017 compared to the previous four years:
Financial Analysis Item
2013 2014 2015 2016 2017
Current Ratio 52% 57% 37% 27% 76%
Liquidity Ratio 19% 22% 12% 7% 22%
Cash Ratio 11% 9% 7% 2% 12%
Financial Analysis Item
2013 2014 2015 2016 2017
Net Working Capital
(in millions Syrian Pounds)
(3.681) (3.882) (11.152) (21.957) (3.176)
Financial Analysis Item
2013 2014 2015 2016 2017
Profit/Loss Per Share/SYP (44.1) (55.48) (101.03) (131.58) 218.60
The Financial Impact of Non-Recurrent of Operations
In October 2017, the company held a meeting with the Chinese Construction company CBMI
Construction Co. Ltd., which constructed Al Badia Cement plant to negotiate the amounts due for the
Chinese company amount of $43.6 million, (Only forty-three million six hundred thousand US dollars)
total of principal amount and benefits.
Due to the failure of the Chinese company to complete the entire work according to the contractual
conditions and the sudden departure during the years 2011-2012, as a result of the security conditions
and events, the above-mentioned meeting resulted in the following:
- Al Badia Cement Company agreed to pay $15 million (Only 15 million USD) as a final settlement
of the Company's obligations to the Chinese construction company.
- Al Badia Cement Company is exempted from the whole value of the benefits due to the
prevailing circumstances.
- The Chinese contracting company was handed over the final acceptance certificate for the plant.
For more details on the financial impact of this settlement, please check the attached financial report for
2017.
Time series of profit and loss and net shareholders' equity
Description Currency 2013 2014 2015 2016 2017
Net Profit/loss SYP (597.49..592.4) (415.4174214..) (.1.4417..1..4) (.71.57142414.2) 7.1,,412471,.2
Profit
Distribution SYP/share - - - - -
Shareholders
net rights SYP ,945.9.2792.. (.124214,51,.2) (..14721,.41572) (75154.1,.71.75) (,1.,,14,.1.42)
Share nominal
value SYP/share .44944 .44944 .44944 .44944 .44944
Share book
value SYP/share ,29,. (..9.4) (...9.,) (74492.) (,79..)
Financial Statements
The Financial Impact of Non-Recurrent of Operations
In October 2017, the company held a meeting with the Chinese Construction company CBMI
Construction Co. Ltd., which constructed Al Badia Cement plant to negotiate the amounts due for the
Chinese company amount of $43.6 million, (Only forty-three million six hundred thousand US dollars)
total of principal amount and benefits.
Due to the failure of the Chinese company to complete the entire work according to the contractual
conditions and the sudden departure during the years 2011-2012, as a result of the security conditions
and events, the above-mentioned meeting resulted in the following:
- Al Badia Cement Company agreed to pay $15 million (Only 15 million USD) as a final settlement
of the Company's obligations to the Chinese construction company.
- Al Badia Cement Company is exempted from the whole value of the benefits due to the
prevailing circumstances.
- The Chinese contracting company was handed over the final acceptance certificate for the plant.
For more details on the financial impact of this settlement, please check the attached financial report for
2017.
Time series of profit and loss and net shareholders' equity
Description Currency 2013 2014 2015 2016 2017
Net Profit/loss SYP (597.49..592.4) (415.4174214..) (.1.4417..1..4) (.71.57142414.2) 7.1,,412471,.2
Profit
Distribution SYP/share - - - - -
Shareholders
net rights SYP ,945.9.2792.. (.124214,51,.2) (..14721,.41572) (75154.1,.71.75) (,1.,,14,.1.42)
Share nominal
value SYP/share .44944 .44944 .44944 .44944 .44944
Share book
value SYP/share ,29,. (..9.4) (...9.,) (74492.) (,79..)
As of Dec 31, 2017
SYP
ASSETS
Current Assets
Cash on hand and at banks 1,597,154,664
Advances to suppliers & contractors 1,195,040,708
Due from related parties 2,333,219
Inventory 7,103,508,819
Other debit balances 102,625,373
Total Current assets 10,000,662,783
Non-current assets
Project under construction 300,879,564
Property, plant and equipment 11,959,201,547
Intangible assets 4,340,192
Total non-current assets 12,264,421,303
Total assets 22,265,084,086
LIABILITIES
Current liabilities
Due to suppliers and contractors 680,982,761
Short-term loans 11,265,769,000
Other payables and accrued expenses 905,491,421
Advances from customers 323,961,385
Total current liabilities 13,176,204,567
Non-current liabilities
Due to related parties-non current 12,222,519,326
Long-term loans -
Total non current liabilities 12,222,519,326
Total liabilities 25,398,723,893
SHAREHOLDERS' EQUITY
Paid in capital 9,760,000,000
Legal Reserve 26,569,826
Accumulated realized losses (2,313,784,291)
Accumulated un- realized losses (10,606,425,342)
Total shareholders' equity (3,133,639,807)
Total liabilities and shareholders' equity 22,265,084,086
AL BADIA CEMENT COMPANY
(PUBLIC JOINT STOCK COMPANY)
STATEMENT OF FINANCIAL POSITION
For the period ended Dec
31, 2017
SYP
Net sales 26,746,721,189
Cost of sales (17,312,580,755)
Gross profit 9,434,140,434
General and administrative expenses (3,403,840,715)
Realized FX Gain/ (Losses) (8,512,926,318)
Un-Realized FX Gain/ (Losses) 21,941,280,250
Interest income 22,237,305
Interest expense (1,126,589,326)
Un-resident contractor (CBMI) settelment 2,855,877,826
Contracting fees settelment 143,024,750
Fixed assets disposal losses (17,451,889)
Income / (Loss) for the period 21,335,752,317
Other comprehensive income -
Total comprehensive income 21,335,752,317
Income / (Loss) per share for the period 218.60
AL BADIA CEMENT COMPANY
(PUBLIC JOINT STOCK COMPANY)
STATEMENT OF COMPREHENSIVE INCOME
Paid in capital Legal Reserve
Accumulated realized
losses
Accumulated
un-realized losses Total
SYP SYP SYP SYP SYP
Balance as of Jan 1, 2016 9,760,000,000 - (1,947,384,789) (19,439,930,638) (11,627,315,427)
Gain / (Loss) for the period - - 265,698,257 (13,107,774,954) (12,842,076,697)
Balance as of Dec 31, 2016 9,760,000,000 - (1,681,686,532) (32,547,705,592) (24,469,392,124)
Gain / (Loss) for the period - - (605,527,933) 21,941,280,250 21,335,752,317
Legal reserve allocation 26,569,826 (26,569,826)
Balance as of Dec 31, 2017 9,760,000,000 26,569,826 (2,313,784,291) (10,606,425,342) (3,133,639,807)
AL BADIA CEMENT COMPANY
(PUBLIC JOINT STOCK COMPANY)
STATEMENT OF CHANGE IN SHAREHOLDERS' EQUITY
As of Dec31, 2017
For the period ended
Dec 31, 2017
SYP
Cash Flows from operating activities
Gain / (Loss) for the period 21,335,752,317
Adjustment to reconcile net loss to cash flows from operating activities
Unrealized foreign exchange differences (3,136,565,911)
Depreciation 893,307,181
Amortization 12,972,197
Fixed Asset Disposal 17,451,889
Un-resident contractor (CBMI) settelment (12,616,750,239)
Provision for shareholders' loan interest 46,203,948
Operating (loss) before changes in working capital 6,552,371,382
Change in working capital
Decrease in trade receivables 109,996,957
Increase in inventory (1,403,176,593)
Decrease in other debit balances 53,898,515
Increase in due to supplies and contractors 186,784,020
Increase in advances from customers 323,961,385
Increase in other payables and accrued expenses 181,488,173
Net cash flows from operating activities 6,005,323,839
Cash flows from investing activities
Increase in advances to suppliers & contractors (312,991,623)
Additions to projects under construction (221,167,684)
Acquisition of property, plant and equipment (2,437,089,522)
Additions to intangible assets (1,738,531)
Net cash flows used in investing activities (2,972,987,360)
Cash flows from financing activities
Repayment of short-term loans (6,823,034,770)
Capitalized interest on founders' loan 248,420,800
Increase in financing from realted parties 4,446,285,646
Net cash flows used in financing activities (2,128,328,324)
Foreign exchange differences for cash and cash at banks (49,122,644)
NET increase in cash on hand and at banks 854,885,511
Cash on hand and at banks, beginning of the period 742,269,153
Cash on hand and at banks, end of the period 1,597,154,664
STATEMENT OF CASH FLOWS
AL BADIA CEMENT COMPANY
(PUBLIC JOINT STOCK COMPANY)
