Alyusuf Decor 2012 (Draft)

ALYUSUF DÉCORATION CO. W.L.L

TASHAN – KINGDOM OF BAHRAIN

FINANCIAL STATEMENTS

31 DECEMBER, 2012


Index Page

Administration and contact details 2

Directors' report 3

Auditors’ report. 4 - 5

Statement of financial position 6

Statement of comprehensive income 7

Statement of cash flows 8

Notes to the financial statements. 9 - 13

1


Commercial Registration No. : 985 - 1

Directors : Sayed Mohamed H. Alyusuf

Sayed Basim H Alyusuf

Al Yusuf Holding Co. W.L.L

Registered Office : Building 356, Road 81, Block 405

Tashan

Kingdom of Bahrain.

Bankers : National Bank of Bahrain

HSBC

Ahli United Bank

Bahrain Islamic Bank

Auditors : Moore Stephens

El-Sayed El-Ayouty & Co,

Certified Public Accountants

P.O.Box : 11869

Manama – Kingdom of Bahrain

2

REPORT OF THE BOARD OF DIRECTORS

Legal Status

Principal activities

The company is engaged in the following activities:

Operating results

Shareholding

The shareholding pattern at the end of the year under review was as follow:

Name of shareholders Shareholding (%)

Sayed Mohamed H. Alyusuf 10

Sayed Basim H Alyusuf 10

Al Yusuf Holding Co. W.L.L 80

Auditors

Sayed Mohamed H. Alyusuf

Director

The board of directors presents its report and audited financial statements of the company for the

year ended 31 December, 2012.

Alyusuf Decoration Co. W.L.L is a limited liability company incorporated in the Kingdom of Bahrain

under the Commercial Company Law No. 21 of 2001 and its subsequent amendments.

- First grade Décor contracts

During the year under review, the company achived a turnover of BD 1,986,986 and a net (loss) of

BD (543,166) against a turnover of BD 2,788,775 and net profit of BD 285,537 of the previous

year.

Messrs Moore Stephens, El-Sayed El-Ayouty & Co., Certified Public Accountants were appointed

as external auditors of the company for the year ended 31 December, 2012. M/s Moore Stephens,

El Sayed El Ayouty & Co., Certified Public Accountants are eligible for reappointment for 31

December, 2013 and have expressed their willingness to continue in office.

3

AUDITORS’ REPORT TO THE SHAREHOLDERS


TASHAN – KINGDOM OF BAHRAIN

Report on the financial Statements

Board of directors responsibility for the financial statements

Auditors’ responsibility

The board of directors is responsible for the preparation and fair presentation of these financial

statements in accordance with International financial Reporting Standard issued by the

International Accounting Standards Board. This responsibility includes implementing and

maintaining internal controls relevant to the preparation and fair presentation of financial

statements that are free from material misstatements, whether due to fraud or error, selecting and

applying appropriate accounting policies, and making accounting estimates that are reasonable in

the circumstances.

Our responsibility is to express an opinion on these financial statements based on our audit. We

conducted our audit in accordance with the International Standards on Auditing. Those standards

require that we comply with ethical requirements and plan and perform the audit to obtain

reasonable assurance whether the financial statements are free from material misstatements.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risk of material misstatements of the financial

statements, whether due to fraud or error. In making those risks assessments, the auditor’s

considers internal controls relevant to the entity’s preparation and fair presentation of the financial

statements in order to design audit procedures that are appropriate in the circumstances, but not

for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. An

audit also include evaluating the appropriateness of accounting policies used and the

reasonableness of accounting estimates made by the management, as well as evaluating the

overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit opinion.

We have audited the financial statements of Alyusuf Decoration Co. W.L.L which comprise of the

statement of financial position as at 31 December, 2012, the related statement of comprehensive

income and the statement of cash flows for the year then ended and a summary of significant

accounting policies and other explanatory notes set out on pages 6 to 13.

4

Opinion

Report on the regulatory requirements

MOORE STEPHENS

EL-SAYED EL-AYOUTY & CO.

Certified Public Accountants

MOHAMMED AL-SHAYEB

Kingdom of Bahrain : 23 November, 2013

In addition, we report that nothing has come to our attention which causes us to believe that the

company has breached any of the applicable provision of the Bahraini Commercial Companies

Law No. 21 of 2001, or of its Articles of Association which would materially affect its activities or its

financial position as at 31 December, 2012.

In our opinion, the financial statements presents fairly, in all material respects, the financial

position of the company as at 31 December, 2012, the results of its operations and its cash flows

for the year then ended in accordance with International Financial Reporting Standards.

We have obtained all information and explanations which are necessary for the purpose of the

audit and to the best of our knowledge and belief, no violation of the constitution of the company

came to our attention which would materially affect the company’s financial position.

5


STATEMENT OF FINANCIAL POSITION

AS AT 31 DECEMBER, 2012

(Amounts are expressed in Bahraini Dinars)

Note 2012 2011

Assets

Non – current assets

Property, plant and equipment 3 78,383 91,053

Current assets

Inventories 1,078 -

Accounts and other receivables 4 1,991,476 1,924,968

Due from related parties 5 145,151 62,335

Cash and bank balances 8,463 524

Total current assets 2,146,168 1,987,827

Total assets 2,224,551 2,078,880

Equity and liabilities

Equity

Share capital 6 300,000 300,000

Statutory reserve 7 150,000 150,000

Shareholders' current account 8 111,341 15,767

Accumulated (losses) / Retained earnings 9 (73,787) 469,274

Total Equity 487,554 935,041

Liabilities

Non - current liabilities

Term loan 344,684 -

Employees’ terminal benefits 126,369 108,505

Total non current liabilites 471,053 108,505

Current liabilities

Term loan 144,444 -

Employees’ terminal benefits 70,943 72,769

Accounts and other payables 10 750,045 699,363

Due to related parties 11 9,671 113,686

Bank overdraft 290,841 149,516

Total current liabilites 1,265,944 1,035,334

Total Liabilities 1,736,997 1,143,839

Total equity and liabilities 2,224,551 2,078,880

The attached notes 1 to 13 form part of these financial statements

(Shareholder) (Shareholder)

Sayed Mohamed H. AlyusufSayed Basim H. Alyusuf

6


STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 DECEMBER, 2012


Note 2012 2011

Income

Income from operations 1,986,986 2,788,775

Cost of operations 12 (2,099,300) (1,969,477)

Gross (loss) / profit (112,314) 819,298

Other income 4,419 187

(107,895) 819,485

Expenses

General and administration 13 (327,656) (478,195)

Financial charge (87,186) (25,661)

Amortization - (2,861)

Depreciation 3 (25,000) (27,231)

Prior year adjustment 4,676 -

Total expenses (435,166) (533,948)

Net (Loss) / Profit for the year 9 (543,061) 285,537

(Tranferred to accumulated losses)

Other comprehensive Income - -

Total comprehensive (loss) / income for the year (543,061) 285,537

The attached notes 1 to 13 form part of these financial statements

(Shareholder) (Shareholder)

Sayed Basim H. Alyusuf Sayed Mohamed H. Alyusuf

7


STATEMENT OF CASH FLOWS



2012 2011

Operating activities

Total comprehensive (loss) / income (543,061) 285,537

Adjustments for:

Depreciation 25,000 27,231

Amortization - 2,861

Changes in operating assets and liabilities

Inventories (1,078) -

Accounts and other receivables (66,508) (614,905)

Due from related party (82,816) (62,335)

Accounts and other payables 50,682 625,195

Due to related parties (104,015) 3,033

Employees’ end of service benefits (net) 16,038 4,839

Net cash (used in) / from operating activates (705,758) 271,456

Investing activities

Acquisition of property, plant and equipment (14,430) (15,059)

Disposal of fixed aseets 2,100 3,600

Net cash (used in) investing activities (12,330) (11,459)

Financing activities

Transfer from retained earnings - (240,000)

Proceeds from term loan 489,128 -

Movements during the year (net) 95,574 (245,178)

Net cash from / (used in) financing activities 584,702 (485,178)

Net (decrease) in cash and cash equivalents (133,386) (225,181)

Cash and cash equivalents at beginning of the year (148,992) 76,189

Cash and cash equivalents at end of the year (282,378) (148,992)

Cash and cash equivalents comprise:

Cash and bank balances 8,463 524

Bank overdraft (290,841) (149,516)

(282,378) (148,992)

8


NOTES TO THE FINANCIAL STATEMENTS



1 General information

2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

2.1 Accounting Convention:

2.2 Property, plant and equipment

a Furniture and Fixtures 25%

b Office equipments 25%

c Plant & Machinery 25%

d Motor vehicle 25%

2.3 Cash and cash equivalent:

2.4 Inventory:

2.5 Accounts and other receivables

2.6 Accounts and other payables

Property, Plant and Equipment are stated at cost less accumulated depreciation. The related

depreciation is provided on cost of the assets by the straight line method at the following annual

rates:

Inventories are valued at the lower of cost and net realizable value after making due allowances

for any obsolete or slow moving items.

The Financial Statements are prepared under the "Historical Cost Convention" and on accrual

basis.

Alyusuf Decoration Co. W.L.L is registered with the Ministry of Industry and Commerce, Kingdom

of Bahrain as a limited liability company with Commercial Registration No. 985 -1 dated 19h May,

1968. The principle acitiviy of the company is:

- First grade Décor contracts.

For the purpose of cash flow statement, cash and cash equivalents comprise of cash in hand and

balances with banks and net of bank overdraft.

Trade debtors are recognised on normal credit terms and do not bear interest. Staff advances

and loans also do not bear interest. At each reporting date, the carrying amounts of trade debtors

and staff advances and loans are reviewed to determine whether there is any objective evidence

that the amounts are not recoverable. If so, an impairment loss is recognised immediately in the

income statement.

Trade creditors are obligation on normal credit terms and do not bear interest.

9





2.7 Term loans

2.8 Employees' terminal benefit

Other benefits

2.9 Revenue recognition

For Bahraini nationals, the company makes contribution to the Social Insurance

Organization(SIO). This is a funded defined contribution plan and the company’s contributions

are charged to the statement of comprehensive income in the year to which they relate. The

company’s obligations are limited to the amounts contributed to the plan

For non-Bahraini employees the company provides for end of service benefits in accordance with

the Bahrain Labor Law based on their salaries at the time of leaving and number of year of

service. Provision for this unfunded commitment , which represents a defined benefit plan, has

been made by calculating the liability had all employees left at the reporting date.

The company provides for employees' annual leave, holiday air passage in accordance with the

Bahrain Labor Law. At each reporting date, the best estimated amount is calculated based on

their salaries and number of year of service. Any other benefits are recognized as they accrue to

the employees.

Income is calculated by using the percentage of completion method which represents the value

of contract/project work executed during the year.

Income from operations

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the

company and the revenue can be measured reliably. Revenue is measured at the fair value of

the consideration received or receivable, excluding discounts, rebates and sales tax or duty.

More specifically the following recognition criteria must also be met before revenue is

recognized:

Term loans are initially measured at the total amount payable (total no. of installments).

Thereafter, these loans are reduced by the installments paid to the banks/financial institutions.

Also on initial measurement, the total finance cost is accumulated which are then spread over the

term of the loans on straight line basis. In management view, the policy is more suitable for the

Company.

10





3 Property, plant and equipment

Furnitures

& Fixtures

Office

equipments

Plant &

Machinery

Motor

Vehicles Total

Cost:

At 1 January, 2012 41,645 47,520 46,690 178,627 314,482

Additions - 1,130 - 13,300 14,430

Disposal - - - (2,100) (2,100)

At 31 December, 2012 41,645 48,650 46,690 189,827 326,812

Depreciation:

At 1 January, 2012 34,692 32,683 44,626 111,428 223,429

Charge for the year 1,738 3,610 515 19,137 25,000

At 31 December, 2012 36,430 36,293 45,141 130,565 248,429

Net book value:

At 31 December, 2012 5,215 12,357 1,549 59,262 78,383

At 31 December, 2011 6,953 14,837 2,064 67,199 91,053

2012 2011

4 Accounts and other receivables

Trade debtors 1,760,602 1,699,237

Provision for doubtful debt (32,594) (32,594)

1,728,008 1,666,643

Investment proceeds receivable 228,000 228,000

Refundable deposit 3,300 3,300

Staff advances 24,183 19,076

Other receivable 7,985 7,949

1,991,476 1,924,968

5 Due from related parties

Alyusuf Holding Co. W.L.L 87,258 22,000

Alyusuf Italconcept Co. W.L.L 32,000 -

Alyusuf Thermo Glass Co. W.L.L 1,678 -

Alyusuf Aluminium Co. W.L.L 21,020 -

Globart Gallery Co. W.L.L 2,740 261

Alyusuf Properties Co. W.L.L 455 -

Alyusuf Glass & Mirrors Co. W.L.L - 40,074

145,151 62,335

11





6 Share capital

No. of

shares Ratio (%) Amount

Sayed Mohamed H. Alyusuf 300 10 30,000

300 10 30,000

2,400 80 240,000

3,000 100 300,000

7 Statutory reserve

2012 2011

8 Shareholders' current account

Opening Balance 15,767 260,945

Movement (net) 95,574 (245,178)

111,341 15,767

9 Accumulated (losses)

Opening Balance 469,274 423,737

Adjustment for the year - (240,000)

Net (Loss) / Profit : Page 7 (543,061) 285,537

(73,787) 469,274

10 Accounts and other payables

Trade creditors 650,175 678,136

Accrued expenses 181 -

Other payables 99,689 21,227

750,045 699,363

Under the provisoins of Bahrain commercial company law 2001 and the articles of association,

10% of the net profit for the year is transfered to the statutory reserve. The company may resolve

to discontinue such transfers when the reserve equals to 50% of the capital. This reserve is not

available for distribution except in the cases stipulated by law and company's article of

association.

Name of the shareholders

Al Yusuf Holding Co. W.L.L

Sayed Basim H. Alyusuf

The Capital of the Company is BD. 300,000 (Bahraini Dinars Three Hundred Thousand only)

divided into 3,000 shares of BD. 100 each contributed as under:

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2012 2011

11 Due to related parties

Alyusuf Holding Co. W.L.L - 35,650

Alyusuf Building materials Co. W.L.L 5,732 64,997

Alyusuf Glass & Mirrors Co. W.L.L 3,939 -

Alyusuf Aluminium Co. W.L.L - 3,851

Alyusuf Thermo Glass W.L.L - 9,188

9,671 113,686

12 Cost of sales

Cost of materials 1,615,762 1,468,953

Cost of labor 399,838 379,629

Other direct expenses 83,700 120,895

2,099,300 1,969,477

13 General and administration expenses

Staff costs 238,732 167,849

Advertising and promotional expenses 5,302 5,019

Other expenses 83,622 305,327

327,656 478,195

13

Alyusuf Decor 2012 (Draft)

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