EL Sewedy Electric Company (An Egyptian Joint Stock Company)
Interim consolidated financial statements for the financial period
from 1 January 2014 to 31 March 2014 and limited review report
Hazem Hassan Public Accountants & Consultants
Pyramids Heights Office Park Telephone : (202) 35362200 - 353622 11 Km 22 Cairo/Alex Road Telefax : (202) 35 36 23 01 - 35 36 2305
E-mail : [email protected] f>f>stal Code : 12556 AI Ahram
P.O. Box 48 AI Ahram Giza - Cairo - Egypt
Translated from Arabic
Report on limited review of interim consolidated financial statements To: The members of board of directors of EI Sewedy Electric Company
Introduction
We have reviewed for the accompanying consolidated balance sheet of EI Sewedy Electric Company as of 31 March 2014 and the related consolidated statements of income, cash flows and Changes in equity for the three months then ended, and a summary of significant accounting policies and other explanatory notes. Management is responsible for the preparation and fair presentation of these interim consolidated financial statements in accordance with Egyptian Accounting Standards. Our responsibility is to express a conclusion on these interim consolidated financial statements based on our limited review.
Scope of Limited Review
We conducted our 1 imited review in accordance with Egyptian Standard on Review Engagements 2410, " Limited Review of Interim Financial Statements Performed by the Independent Auditor of the Entity." A limited review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters in the Company, and applying analytical and other review procedures. A limited review is substantially less in scope than an audit conducted in accordance with Egyptian 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 on these interim consolidated financial statements.
Conclusion
Based on our limited review, nothing has come to our attention that causes us to believe that the accompanying interim consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the El Sewedy Electric Company as at 31 March 2014, and of its consolidated financial performance and its consolidated cash flow for the three-months then ended in accordance with Egyptian Accounting Standards.
Emphasis of matter
Without qualifying our conclusion, as discussed in Note No. [30] to the consolidated financial statements, we draw attention to the uncertainty that cast significant doubt about the ability of one of the group subsidiaries that supply wind power turbines to generate cash flows because of the low probability of obtaining new contracts in the future and the uncertainty in executing the CUITent major contract, consequently the management has recorded an impairment of the patents, and the goodwill recognized at the acquisition of the subsidiary amounted to L.E 112.9 million and L.E 48.6 million, respectively within year ended 3 I December 2013 in the consolidated financial statements. The total value of the consolidated assets of this subsidiary amounted to L.E 362 million as of 31 March 2014. The ultimate outcome of the recoverabil ity of these assets cannot be presently determined.
fl f ;t/ ~ {h&M "'~.~ KPMG Hazem Hassan
Public Accountants And Consultants , .
Cairo, 8 June 2014
Translated from Arahic
EL Sewedy Electric Company ( An Egyptian Joint Stock Company)
Consolidated Balance Sheet As of 31 March 2014
Note No. Assets
Long term assets
Fi xed assels (3-3).(6)
Projeci under progress (3-3)«7)
In vestments availnb le for sa le (3-5)«8)
Investments in associates (3- 1)
Debit ba lances (3-4 )·(9)
Int angible assets (3-7) '(30)
Deferred lax assets (3- 19)'(20)
Total long term assets Current assets
Inventories (3-8)·( 10)
Trade, notes and other receivab les (3-4)'( 11 )
Due from related parlies (28)
Investment fu nd / treasury bills (3-6)'(12)
Banks and cash in hand ( 13) A""ls held for sa Ie (3-9) Total current assets
Current liabilities
Banks faci lit ies nnd overd raft (3-12).( 14)
Lonns (3- 12).( (5)
Notes payab le due to banks
Trade, noles nnd other payables (3 -4)0( 16)
Due 10 relared parties (28)
Provisions (3- 11 )«17)
Total current liabilities
Working capital
Tolal investments
These investments to be financed as follows :
Shareholders' Equity
Issued nnd paid capila l ( 18)
Own shnres
Reserves (19)
In crease in Ihe net assels of Ih e acqu ired su bsidiaries over Ihe consid eral ion paid for the investmenl (3- 1 )
Relained earnings
Net profits for the period/year
Fore ign exchange differences
Total parent's shareholders' equity
Minority interest
Total equity
Long term liabilities
Loans (3- 12)« 15)
DefelTed tax liabilities (3-19) ·(20)
Olher liabilities (21) Total long term liabilities
• The accom panying notes are an inlegral part of these interim consolidated financial statements.
Chief Financial Officer Managing Director
31/0312014 3111212013
L.E L.E
3 149765593 3215 4019 11
152603458 135091257
10 736 806 10 266200
12693283 12693283
73 431 195 72 257554
54313 176 84819531
60244 519 447786 13
3513 788 030 3575308349
3203412 162 3699 178 762
5750233485 5290660 158
203985677 192 873 358
279416034 182700369
I 299493 144 I 346 17387 1
1018949 72 296 777
10737559451 10783883295
3218055 119 4009828 259
I 092 037 852 823770990
953 164 19 84473968
3 449721 883 3 105580862
176283261 172 6801 87
248 730 882 219829 699
8280 145416 8416 163 965
2457414035 2367719330
5971202065 5943 027679
2234 180000 2234180000
( I 422 (60) ( I 422 160)
149535 197 149535 197
578 908 660 578908660
I 988 833 580 I 900996805
105081 480 9650 1 795
( 49 928 554) (87612698)
5005188203 4871 087 599
438270509 415952466
5443458712 5287040065
358972 469 504689446
119982276 101375596
48788 608 49922 572
527743353 655987614
5971202065 5943027679
Chairman
Mr. Amr Mohamed Labib
Limiled Review report "allached "
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Translated from Arabic EL Sewedy Electric Company
(An Egyptian Joint Stock Company) Consolidated Income Statement
for the financial period from 1 January 2014 to 31 March 2014
Note No
financial period from 1/1/2014 to 3113/2014
L.E
Operational revenues
Operational costs
(3-15)
(3-17)
4342901 528
(3 729 520 956)
Gross profits 613 380 572
Other operating income (23) 25641487
Selling and distribution expenses (3-17) ( 1I8 491 664)
Administrative expenses (3-17) ( 165392776)
Other operating expenses (24) ( 145228080)
Operating profits 209909539 199772 317
Financing income
Financing costs
Net financing costs (25)
21233258
(67850043)
(46616785)
5724418
(97 194428)
(91470010)
Net profits for the period before tax 163292754
Income tax
Current income tax
Deferred income tax
(3-19)
(3-19)
(37368338)
600 107
Net profits for the period after tax 126524523
Attributable to :
Equity holders of the holding company 105081480
Minority interest 21443043
126524523
Earnings per share (3-20)«33) 0.47
* The accompanying notes are an integral part of these Consolidated financial statement.
financial period from 1/1/2013 to 3113/2013
L.E
3598 150591
(3048161 376)
549989215
16704126
(96820138)
( 133901 767)
( 136 199 119)
108302307
(35744431)
2297449
74855325
62235836
12619489
74855325 0.28
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Translated from Arabic
EL Sewed! Electric Com~an!
(An Egyptian Joint Stock Company) Consolidated changes in Equity statement
for the financial ~eriod from 1 January 2014 to 31 March 2014
Increase in the net
Issued and paid capital Own shares Legal reserve General reserve
assets of the acquired subsidiaries
over the consideration paid
Retained earnings
Profit attributable to the holding
for the period
Foreign exchange differences resulted
from foreign entities translation
Total parent's shareholders' equity Minority interest
Total share holders' equity
for the investment
L.E L.E L.E L.E L.E L.E L.E L.E L.E L.E L.E Balance as of 31 December 2012 2234180000 ( I 422 160) 90880846 43816730 578908660 2002185741 116540824 (231725543) 4833365098 412433987 5245799085
Transferred to retained earning 116540824 ( 116540824)
Transferred to Legal Reserve 14837621 ( 14837621)
Minority share in subsidiaries profit distribution ( 30689906) ( 30 689 906)
Minority share in capital increase of subsidiaries during the year 618247 618247
Foreign exchange differences from foreign entities translation 144112845 144 112845 144112845
Adjustments to the retained earnings (42363291) (42363291) (4436709) (46800000)
Cash Dividends to Shareholders (Profits 2012) ( III 709 000) ( III 709000) ( III 709 000)
Dividends to employees (48819848) (48819848) (48819848)
Net profits for the year 96501 795 96501795 38026847 134528642
Balance as of 31 December 2013 2234180000 ( I 422 160) 105718467 43816730 578908660 1900996805 96501795 (87612698) 4871087599 415952466 5287040065
Transferred to retained earnings 96501 795 (96501795)
Minority share in capital increase of subsidiaries or acquired subsidiaries during the period
875000 875000
Foreign exchange differences from foreign entities translation 37684144 37684144 37684144
Adjustments to the retained earnings ( 8665020) (8665020) (8665020)
Net profits for the period from 11112014 to 3113/2014 105081480 105081480 21443043 126524523
Balance as of 31 March 2014 2234 180000 ( 1422 160) 105718467 43816730 578908660 1988833580 105081480 (49928554) 5005188203 438270509 5443458712
Balance as of 31 Decmber 2012 2234180000 ( I 422 160) 90880846 43816730 578908660 2002185741 116540824 (231751543) 4833339098 412433987 5245773085
Transferred to retained earnings 116540824 ( 116540824)
Foreign exchange differences from foreign entities translation 63684188 63684 188 63684188
Adjustments to the retained earnings (20769585) (20769585) (3730969) (24500554)
Dividends to employees(for profit from previous years) (5072 931) (5072 931) (5072 931)
Net profits for the period 11112013 to 3113/2013 62235836 62235836 12619489 74855325
Balance as of 31 March 2013 2234180000 ( 1422160) 90880846 43816730 578908660 2092884049 62235836 ( 168 067 355) 4933416606 421322506 5354739112
* The accompanying nOles are an integral part of these consolidated financial statements.
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