Aamal Company Q.S.C. CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER - PDF document

Aamal Company Q.S.C. CONSOLIDATED FINANCIAL STATEMENTS 31 DECEMBER 2010

INDEPENDENT AUDITORS’ REPORT TO THE SHAREHOLDERS OF AAMAL COMPANY Q.S.C. Report on the Financial Statements We have audited the accompanying consolidated financial statements of Aamal Company Q.S.C. (the “Company”) and its subsidiaries (together referred to as the “Group”), which comprise the consolidated statement of financial position as at 31 December 2010 and the consolidated statement of comprehensive income, consolidated statement of cash flows and consolidated statement of changes in equity for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with 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 consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgement, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Company’s preparation and fair presentation of the consolidated 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 Company’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as of 31 December 2010 and its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards. Report on Legal and Other Regulatory Requirements Furthermore, in our opinion proper books of account have been kept by the Company, an inventory count has been conducted in accordance with established principles and the financial statements comply with the Qatar Commercial Companies’ Law No. 5 of 2002 and the Company’s Articles of Association. We further confirm that the financial information included in the Annual Report of the Board of Directors is in agreement with the books and records of the Company. We have obtained all the information and explanations we required for the purpose of our audit, and are not aware of any violations of the above mentioned law or the Articles of Association having occurred during the year, which might have had a material effect on the business of the Company or on its financial position. Firas Qoussous of Ernst & Young Auditor's Registration No. 236 Date: 31 January 2011 Doha

Aamal Company Q.S.C. CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 31 December 2010 2010 2009 Notes QR QR ASSETS Current assets Cash and bank balances 5 127,338,917 506,122,462 Accounts receivable and prepayments 6 391,199,748 164,473,101 Amounts due from related parties 7 77,008,942 38,751,875 Inventories 8 206,554,304 113,669,597 802,101,911 823,017,035 Non-current assets Goodwill 4 109,132,500 - Capital expenditure advances 9 - 5,450,478 Investment in associates 10 6,458,968 6,037,371 Investment properties 11 5,262,402,289 4,745,582,667 Properties under development 12 - 115,158,073 Property, plant and equipment 13 405,916,960 326,606,115 5,783,910,717 5,198,834,704 TOTAL ASSETS 6,586,012,628 6,021,851,739 LIABILITIES AND EQUITY Current liabilities Accounts payable and accruals 14 241,216,617 142,169,567 Amounts due to related parties 15 59,866,034 18,363,022 Interest bearing loans and borrowings 16 313,210,987 78,701,353 Bank overdrafts 5 14,320,661 15,347,962 628,614,299 254,581,904 Non-current liabilities Interest bearing loans and borrowings 16 475,248,226 859,675,640 Employees’ end of service benefits 17 15,118,252 12,033,082 490,366,478 871,708,722 Total liabilities 1,118,980,777 1,126,290,626 EQUITY Share capital 18 4,500,000,000 3,795,000,000 Legal reserve 19 221,369,877 170,090,934 General reserve 19 26,365,990 26,365,990 Retained earnings 608,202,768 837,925,319 Equity attributable to equity holders of the parent 5,355,938,635 4,829,382,243 Non-controlling interests 111,093,216 66,178,870 Total equity 5,467,031,851 4,895,561,113 TOTAL LIABILITIES AND EQUITY 6,586,012,628 6,021,851,739 Sheikh Faisal Bin Qassim Al-Thani Tarek Mahmoud El Sayed Mohammad Ramahi Chairman Managing Director Chief Financial Officer The attached notes 1 to 34 form part of these consolidated financial statements. 2

Aamal Company Q.S.C. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME Year Ended 31 December 2010 2010 2009 QR QR Notes Revenues 20 1,217,091,238 705,219,507 Direct costs 21 (833,946,641) (419,116,978) 286,102,529 GROSS PROFIT 383,144,597 Other income 22 44,167,223 36,649,895 Marketing and promotion expenses (11,799,709) (13,552,609) General and administrative expenses 23 (72,229,151) (106,148,305) Depreciation (6,485,677) (4,337,735) Finance costs 24 (54,149,810) (69,108,431) Share of profit of associates 10 812,946 857,371 PROFIT BEFORE FAIR VALUE GAINS ON 232,829,744 181,093,390 INVESTMENT PROPERTIES Net fair value gains on investment properties 11 329,021,887 68,517,744 PROFIT AND TOTAL COMPREHENSIVE INCOME 561,851,631 249,611,134 FOR THE YEAR Attributable to: Equity holders of the parent 526,556,392 249,870,883 Non-controlling interests 35,295,239 (259,749) 561,851,631 249,611,134 Basic and diluted earnings per share (QR) (attributable to equity holders of the parent) 25 1.17 0.56 The attached notes 1 to 34 form part of these consolidated financial statements. 3

Aamal Company Q.S.C. CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended 31 December 2010 2010 2009 Notes QR QR OPERATING ACTIVITIES Profit for the year 561,851,631 249,611,134 Adjustment for: Net fair value gains on investment properties 11 (329,021,887) (68,517,744) Depreciation 13 25,648,412 12,627,835 Provision for employees’ end of service benefits 17 4,348,966 3,015,553 Investment in associate written-off - 91,349 Profit on disposal of plant and equipment 22 (89,961) (43,139) Interest income 22 (30,519,912) (32,033,461) Finance costs 24 69,108,431 54,149,810 Share of profit of associates 10 (857,371) (812,946) Operating profit before working capital changes: 300,604,083 217,952,617 Inventories (59,512,585) (56,742,461) Accounts receivable and prepayments (109,462,197) (7,068,942) Accounts payable and accruals (88,088,590) 28,424,813 Net movement in amounts due from and due to related parties 3,211,250 (59,747,566) Cash from operations 46,751,961 122,818,461 Finance costs paid 24 (68,959,701) (53,968,587) End of service benefits paid 17 (697,623) (1,484,226) Net cash (used in) from operating activities 68,152,251 (23,691,966) INVESTING ACTIVITIES Interest income received 22 30,519,912 32,033,461 Proceeds from disposal of property, plant and equipment 295,400 139,463 Movement in bank deposits blocked as collateral 5 285,000 7,339,180 Dividends received from an associate - 300,000 Additions to investment properties 11 (24,439,097) (1,668,694) Additions to properties under development 12 (48,200,565) (52,612,573) Acquisition of a subsidiary, net of cash acquired 4 (85,076,863) - Additions to property, plant and equipment net of capital expenditure advances released (97,906,575) (209,134,379) Investment in associates - (70,000) Net cash used in investing activities (224,222,788) (223,973,542) FINANCING ACTIVITIES Net movement in interest bearing loans and borrowings 98,060,364 (150,066,490) Non-controlling interests contributions 20,510,000 196,934 Net cash (used in) from financing activities (129,556,490) 98,257,298 (377,471,244) (57,563,993) DECREASE IN CASH AND CASH EQUIVALENTS Cash and cash equivalents at I January 490,028,680 547,592,673 5 112,557,436 490,028,680 CASH AND CASH EQUIVALENTS AT 31 DECEMBER The attached notes 1 to 34 form part of these consolidated financial statements. 4