TIDMMNHD
RNS Number : 0943U
Madinet Nasr for Housing & Develop.
20 November 2019
Nasr City - Cons 9-2019E V2
Madinet Nasr for Housing and Development - S.A.E.
SUMMARIZED Interim
CONSOLIDATED FINANCIAL STATEMENTS
and Limited review report thereon
AT 30 September 2019
Translation of financial statements
originally issued in Arabic
LIMITED REVIEW REPORT ON THE SUMMARY INTERIM
CONSOLIDATED FINANCIAL STATEMENTS
TO THE Board of Directors OF
MADINET NASR FOR HOUSING and DEVELOPMENT- S.A.E.
We have reviewed the interim consolidated financial statements
of Madinet Nasr for Housing and Development - S.A.E. for the period
from 1 January 2019 to 30 September 2019, from which the attached
summary consolidated financial statements are derived, in
accordance with the Egyptian Standards on Auditing and the relevant
laws and regulations. As stated in our Arabic review report dated
12 November 2019, we expressed an unqualified review conclusion, on
the consolidated financial statements for the period then ended,
with an emphasis of matter regarding the going concern of the
subsidiary (Al Nasr Company for Utilities and Installations), from
which the attached interim summary consolidated financial
statements are derived.
In our opinion, the attached summary consolidated financial
statements are consistent in all material respects, with the
interim consolidated financial statements for the period then
ended.
In order to obtain a comprehensive understanding of the
company's interim consolidated financial position as of 30
September 2019, the results of its operations for the period then
ended and our scope of limited review, you should refer to the
Arabic interim consolidated financial statements for the period
then ended and our review report thereon.
Mohanad T. Khaled
Fellow of ACCA
Fellow of ESAA
R.A.A. 22444
FRA No. 375
Cairo, 20 November 2019
Madinet Nasr for Housing and Development - S.A.E.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
At 30 September 2019
30/9/2019 31/12/2018
Note L.E. L.E.
Assets
Non-Current Assets
Fixed assets (Net) 4/1 49,673,298 54,445,418
Fixed assets under construction 4/2 17,826,517 18,121,810
Held to maturity investments 5/1 672,200 672,200
Available for sale investments 5/2 4,833,310 4,833,310
Investments properties 5/3 13,226,864 12,859,265
Long term notes receivable (Net) 8 6,117,396,047 6,149,282,308
Deferred tax asset 32 8,815,089 8,128,980
--------------- ---------------
Total Non-Current Assets 6,212,443,325 6,248,343,291
--------------- ---------------
Current Assets
Inventories 6 52,625,618 54,799,073
Lands and unfinished properties - WIP 7 2,265,049,882 1,455,180,110
Finished properties 7 78,545,714 78,545,714
Short term notes receivable 8 2,420,155,124 2,239,238,936
Trade receivables (Net) 8 852,862,882 776,161,974
Trade payables - debit balances (Net) 9 556,703,822 227,082,786
Debtors and other debit balances 10 337,885,196 262,364,491
Cash margin on letters of guarantee 10,290,918 10,290,918
Tax Authority 13,416,303 632,377
Investments at fair value through profit and loss 5/4 12,611,730 12,169,504
Investments held to maturity - Treasury bills 5/5 103,653,634 115,893,797
Bank deposits of compounds facility management 21 394,067,214 338,488,109
Cash and bank balances 11 883,296,289 485,592,406
Total Current Assets 7,981,164,326 6,056,440,195
--------------- ---------------
Total Assets 14,193,607,651 12,304,783,486
=============== ===============
EQUITY AND LIABILITIES
Equity
Issued and paid up capital 17 1,440,000,000 1,200,000,000
Legal reserve 223,961,329 170,478,648
Retained earnings 1,598,077,281 918,233,758
Net profit for the period 625,562,822 1,084,591,561
--------------- ---------------
Issued capital and reserves attributable to owners of the parent 3,887,601,432 3,373,303,967
Non-controlling interest 18 95,635,952 96,136,160
Total Equity 3,983,237,384 3,469,440,127
--------------- ---------------
CFO and Head of investors relationships Managing Director Chairman
----------------------------------------- ------------------------- ----------------------------
Mr. Mohamed Abdelsalam Eng. Ahmed Ali Elhitamy Eng. Mohamed Hazem Barakat
Madinet Nasr for Housing and Development - S.A.E.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION - Continued
At 30 September 2019
30/9/2019 31/12/2018
Note L.E. L.E.
Non-Current Liabilities
Unearned revenues 12 7,386,939,387 6,694,922,865
Long term notes payable 23,289,510 39,255,924
Term loans 19 503,608,238 238,780,101
---------------
Total Non-Current Liabilities 7,913,837,135 6,972,958,890
--------------- ---------------
Current Liabilities
Creditors - customers 96,993,380 39,066,777
Provisions 13 122,496,217 124,043,415
Trade payables 423,771,001 343,573,058
Project infrastructure completion liabilities 14 96,150,449 116,553,018
Dividends payable 30,289,805 12,195,918
Creditors & other credit balances 16 425,112,128 250,821,122
Current portion of long term loans 19 62,816,379 137,768,093
Short term loans 20/1 233,332,984 111,666,664
Liabilities of compounds facility management 21 390,182,790 340,312,213
Credit banks (credit facilities) 20/2 211,576,325 66,295,682
Tax Authority 203,811,674 320,088,509
--------------- ---------------
Total current liabilities 2,296,533,132 1,862,384,469
--------------- ---------------
Total Liabilities 10,210,370,267 8,835,343,359
---------------
Total EQUITY AND LIABILITIES 14,193,607,651 12,304,783,486
=============== ===============
Limited review report attached.
CFO and Head of investors relationships Managing Director Chairman
----------------------------------------- ------------------------- ----------------------------
Mr. Mohamed Abdelsalam Eng. Ahmed Ali Elhitamy Eng. Mohamed Hazem Barakat
Madinet Nasr for Housing and Development - S.A.E.
CONSOLIDATED STATEMENT OF INCOME
For the period from 1 January to 30 September 2019
From From From From
1/1/2019 1/1/2018 1/7/2019 1/7/2018
To To To To
30/9/2019 30/9/2018 30/9/2019 30/9/2018
Note L.E. L.E. L.E. L.E.
Net revenue 23-A 1,439,022,710 2,059,866,185 350,283,388 792,889,534
Less:
Cost of revenue 23-B (446,808,558) (675,695,572) (142,872,110) (408,961,399)
-------------- -------------- --------------- --------------
Gross Profit 992,214,152 1,384,170,613 207,411,278 383,928,135
Less:
Selling and marketing expenses 25 (150,474,099) (145,494,638) (47,545,062) (25,128,477)
General and administrative expenses 26 (101,825,340) (70,952,328) (32,624,914) (26,753,641)
Decrease in inventory - (700,000) - -
Impairment in trade debtors - debit balances (982,000) (1,500,000) - (1,500,000)
Provisions 13 - (19,395,530) - (4,741,586)
Provisions no longer required - 2,000,000 - -
Finance expenses (70,686,128) (91,627,216) (29,128,314) (30,513,275)
Add:
Finance revenue 27 68,089,184 27,989,839 25,576,242 13,235,083
Other operating revenue 28 79,722,787 37,878,225 20,755,784 15,050,081
-------------- -------------- --------------- --------------
Profit from operations 816,058,556 1,122,368,965 144,445,014 323,576,320
Return on investment held to maturity 709,238 52,229 2,561 10,514
Other expenses 29 (6,130,462) (3,726,413) (1,616,860) (852,902)
-------------- -------------- --------------- --------------
Net profit for the period before tax 810,637,332 1,118,694,781 142,830,715 322,733,932
Income tax (180,338,394) (247,082,504) (27,654,980) (65,200,062)
Deferred tax 32 686,109 (2,538,915) 123,209 (189,241)
-------------- -------------- --------------- --------------
Net profit for the period 630,985,047 869,073,362 115,298,944 257,344,629
Add /(Less): Non-controlling interest (5,422,225) (28,770,137) (998,927) (5,069,265)
-------------- ---------------
Attributable to owners of the parent 30 625,562,822 840,303,225 114,300,017 252,275,364
============== ============== =============== ==============
Earnings per share for the period 34 0.37 0.53 0.05 0.15
============== ============== =============== ==============
CFO and Head of investors relationships Managing Director Chairman
----------------------------------------- ------------------------- ----------------------------
Mr. Mohamed Abdelsalam Eng. Ahmed Ali Elhitamy Eng. Mohamed Hazem Barakat
Madinet Nasr for Housing and Development - S.A.E.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period from 1 January to 30 September 2019
From From From From
1/1/2019 1/1/2018 1/7/2019 1/7/2018
To To To To
30/9/2019 30/9/2018 30/9/2019 30/9/2018
L.E. L.E. L.E. L.E.
Net profit for the period 630,985,047 869,073,362 115,298,944 257,344,629
Other comprehensive income - - - -
------------ ------------- ------------ ------------
Total other comprehensive income 630,985,047 869,073,362 115,298,944 257,344,629
Add:/(Less): Non-controlling interest (5,422,225) (28,770,137) (998,927) (5,069,265)
Owners share of the parent 625,562,822 840,303,225 114,300,017 252,275,364
============ ============= ============ ============
CFO and Head of investors relationships Managing Director Chairman
----------------------------------------- ------------------------- ----------------------------
Mr. Mohamed Abdelsalam Eng. Ahmed Ali Elhitamy Eng. Mohamed Hazem Barakat
Madinet Nasr for Housing and Development - S.A.E.
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
For the period from 1 January to 30 September 2019
Issued and
paid up Legal Retained Net profit for Non-controlling
Capital reserve earnings the period Total interest Total
L.E. L.E. L.E. L.E. L.E. L.E. L.E.
Balance at 1
January 2018 997,100,389 123,313,788 332,036,186 931,621,229 2,384,071,592 70,527,049 2,454,598,641
Transferred to
retained
earnings - - 931,621,229 (931,621,229) - - -
Retained
earnings used
for Al Nasr
for Civil
Works - - (196,289) - (196,289) (177,881) (374,170)
Dividends for
2017 - - (95,165,000) - (95,165,000) - (95,165,000)
Transfer to
legal reserve - 47,164,860 (47,164,860) - - - -
Increase in
capital
according to
the decision
of the
General
Assembly
Meeting held
on 1/4/2018
(Note 17) 202,899,611 - (202,899,611) - - - -
Total
comprehensive
income for
the period - - - 840,303,225 840,303,225 28,770,137 869,073,362
Balance at 30
September
2018 1,200,000,000 170,478,648 918,231,655 840,303,225 3,129,013,528 99,119,305 3,228,132,833
============== ============ ============== ================ ============== ================ ==============
Balance at 1
January 2018 1,200,000,000 170,478,648 918,233,758 1,084,591,561 3,373,303,967 96,136,160 3,469,440,127
Transferred to
retained
earnings - - 1,084,591,561 (1,084,591,561) - - -
Dividends for
2018 - - (104,730,000) - (104,730,000) - (104,730,000)
Transfer to
legal reserve - 53,482,681 (53,482,681) - - - -
Increase in
capital
according to
the decision
of the
General
Assembly
Meeting held
on 25 March
2019 (Note
17) 240,000,000 - (240,000,000) - - - -
Dividends 2018
for Al Nasr
for Civil
Works - - (6,535,357) - (6,535,357) (5,922,433) (12,457,790)
Total
comprehensive
income for
the period - - - 625,562,822 625,562,822 5,422,225 630,985,047
Balance at 30
September
2018 1,440,000,000 223,961,329 1,598,077,281 625,562,822 3,887,601,432 95,635,952 3,983,237,384
============== ============ ============== ================ ============== ================ ==============
CFO and Head of investors relationships Managing Director Chairman
----------------------------------------- ------------------------- ----------------------------
Mr. Mohamed Abdelsalam Eng. Ahmed Ali Elhitamy Eng. Mohamed Hazem Barakat
Madinet Nasr for Housing and Development - S.A.E.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the period from 1 January to 30 September 2019
30/9/2019 30/9/2018
Note L.E. L.E.
OPERATING ACTIVITIES
Net profit for the period before tax 810,637,332 1,118,694,781
Adjustments for:
Depreciation of fixed assets and investments in properties 4/1, 5/3 12,434,540 7,761,292
Bad debts 29 227,916 -
Provisions of impairment of inventory and trade debtors - debit
balances 982,000 21,595,530
Provisions no longer required - (2,000,000)
Revenue of investments held to maturity (709,238) (52,229)
Loss on sale of fixed assets (295,395) 13,261
Net recognized installment sale profit and interest profits and
interests due during the period 15 (28,915,125) (41,410,524)
Loss /(gain) on foreign exchange 29 389,012 (34,192)
Return on Treasury Bills 27 (13,616,039) -
-------------- ----------------
Operating profit before working capital changes: 781,135,003 1,104,567,919
Inventory and housing and development projects (807,696,317) (7,249,793)
Trade receivables, trade payables debit balances and notes receivable (608,875,895) (1,512,233,730)
Trade payables, unearned revenue, creditors and utilities' liabilities 968,063,091 1,069,088,310
Provisions used 13 (1,547,198) (1,542,682)
Dividends paid to directors and employees (93,171,470) (82,739,040)
Income tax paid (309,399,155) (274,593,919)
Assets held for sale 114,909,836 14,731,191
Net cash from operating activities 43,417,895 310,028,256
-------------- ----------------
INVESTING ACTIVITIES:
Payments for purchase of fixed assets & fixed assets under construction 4/1 , 4/2 (7,325,790) (12,344,764)
Gain on sale of fixed assets 298,674 -
Payments for investments in properties (412,215) (2,163,283)
Revenue from other investments held to maturity 709,238 52,229
Net cash used in investing activities (6,730,093) (14,455,818)
-------------- ----------------
CFO and Head of investors relationships Managing Director Chairman
----------------------------------------- ------------------------- ----------------------------
Mr. Mohamed Abdelsalam Eng. Ahmed Ali Elhitamy Eng. Mohamed Hazem Barakat
Madinet Nasr for Housing and Development - S.A.E.
CONSOLIDATED STATEMENT OF CASH FLOWS - Continued
For the period from 1 January to 30 September 2019
30/9/2019 30/9/2018
Note L.E. L.E.
FINANCING ACTIVITIES:
Proceeds from long term loans (5,922,433) (177,881)
Proceeds from long term loans 19 293,325,358 -
Repayments for long term loans 19 (103,448,935) (120,693,933)
Repayments for short term loans 20 (278,333,680) (196,469,455)
Withdrawals from short term loans 20 400,000,000 335,010,374
Net cash from financing activities 305,620,310 17,669,105
-------------- --------------
Change in cash and cash equivalents 342,308,112 313,241,543
Cash and cash equivalents at the beginning of the period 446,066,228 148,985,853
(Loss)/gain on foreign exchange (389,012) 34,192
-------------- --------------
Total cash and cash equivalents at the end of the period 787,985,328 462,261,588
Less: Restricted time deposits against letters of guarantee (92,354,726) (77,986,787)
Restricted investment certificates against letters of guarantee (10,164,807) (8,888,556)
Cash and cash equivalents at the end of the period 20 685,465,795 375,386,245
============== ==============
NON-CASH TRANSACTIONS:
The statement of cash flows does not include the following
non-cash transactions:
- An amount of L.E. 1,012,063 represents amount transferred from
fixed assets under construction to fixed assets during the
period.
- An amount of L.E. 394,067,214 represents bank accounts and
deposits against liabilities of compounds facility management.
- An amount of L.E. 240,000,000 represents amounts of capital
increase by stock dividends funded from retained earnings.
CFO and Head of investors relationships Managing Director Chairman
----------------------------------------- ------------------------- ----------------------------
Mr. Mohamed Abdelsalam Eng. Ahmed Ali Elhitamy Eng. Mohamed Hazem Barakat
Madinet Nasr for Housing and Development - S.A.E.
NOTES TO THE SUMMARIZED CONSOLIDATED FINANCIAL STATEMENTS
30 September 2019
1. COMPANY BACKGROUND
1.1 Legal form of the company
Madinet Nasr for Housing and Development - S.A.E. was
incorporated in accordance with the Presidential Decree No.
815/1959 and was changed to Joint Stock Company according to
Presidential Decree No 2908/1964, then became a subsidiary of
Public Sector Authority for Housing by Presidential Decree No.
469/1983.
The company was converted under the provisions of Law No. 203
for 1991 issued on 30/06/1996 to an Egyptian Joint Stock Company as
a subsidiary to the Holding Company for Housing under the name of
Madinet Nasr Housing and Development. The Extraordinary General
Assembly of the company held on 30/06/1996 approved the change in
the governing laws under which the company was operating from the
provisions of Law No. 203 for 1991 to the provisions of Law No. 159
for 1981 and its executive regulations and published in company's
journal on January 1997.
The Company was registered in the Commercial Registry under No.
(300874) dated 23 December 1996 and Tax Registration No.
095-009-200.
1.2 Activity
The company is engaged in all activities related to real estate
development for land, buildings and facilities including
acquisition of land and real estate, sale and rental, dividing it
and providing all types of facilities necessary for reconstruction
and connected to it in Nasr City and other areas nationwide, the
purchase and development, utilization, leasing and sale of all
buildings and land. The company can establish, manage and invest in
all residential, administrative, tourist, recreational and all
projects necessary to achieve these purposes, and all real estate
operations, financial, commercial and entertainment related to
these purposes, as well as carrying out design, and engineering
consultancy, and supervision of the execution by others.
BIG Investment Group Limited - Britain - is considered the main
shareholder of the company.
1.3 Duration
The company's term is 50 years starting from the date of the
registration in the commercial register and has been renewed for
another 25 years started from 23/12/1996 to 22/12/2021.
1.4 Location
The company's Head Office is located at 4, Youssef Abbass, Nasr
City, Cairo, Egypt.
The Chairman is Eng. Mohamed Hazem Barakat.
The company's ordinary shares are listed on the Egyptian
Exchange (EGX) and, as Global Depositary Receipts (GDRs).
The company's Board of Directors has approved the consolidated
financial statements for the period ended 30 September 2019 on 3
November 2019.
1. COMPANY BACKGROUND - Continued
1.5 Basis of consolidation
A subsidiary is a company in which the company owns more than
50% of the share capital and the company exercises the right to
control the investee when the company is exposed or entitled to
variable returns through the company's contribution to the investee
company and has the ability to affect those returns through its
authority over the company. Therefore the company controls the
investee company when the company has all the following:
-- Power over the investee.
-- Exposure or right to variable returns by contributing to the investee company.
-- The ability to use the authority on the investee company to
influence the amount of proceeds obtained from it.
Investments in subsidiaries are carried at cost less impairment
losses, if any.
-- The consolidated financial statements include the financial
statements of the company and its subsidiaries.
-- The financial statements of the subsidiaries are prepared for
the same reporting year as the parent company, using consistent
accounting policies.
-- All intra-group balances, transactions, income and expenses
and profits and losses resulting from intra-group transactions that
are recognized as assets and liabilities, are eliminated in
full.
-- Subsidiaries are fully consolidated from date of acquisition,
being the date on which the group obtains control, and continue to
be consolidated until the date such control ceases.
-- Non-controlling interests represent the portion of total
comprehensive income and net assets not held by the group are
presented separately in statement of income and within equity in
consolidated financial position, separate from owners of parent's
equity.
The following is a listing of subsidiaries:
Subsidiary Percentage
Ownership Activity
Al Nasr for Civil Works S.A.E. 52.46% Civil construction
Al Nasr for Utilities and Erection S.A.E. 98.37% Civil construction
(Direct investment)
0.84%
(Indirect investment)
2. USE OF ESTIMATES AND JUDGMENTS
The preparation of consolidated financial statements in
accordance with Egyptian Accounting Standards requires management
to make judgments, estimates and assumptions that affect the
application of policies and reported amounts of assets,
liabilities, income and expenses. The estimates and associated
assumptions are based on historical experience and various other
factors that are believed to be reasonable, under the
circumstances, the results of which form the basis of making the
judgments about the carrying values of assets and liabilities.
Actual results may differ from those estimates.
The estimates and underlying assumptions are reviewed on a
continuous basis. Revisions to accounting estimates are recognized
in the period in which the estimate is revised and the future
periods if it affects future periods.
The following are items on the consolidated financial statements
that are effected by judgments, assumptions, and estimates:
- Depreciation of fixed assets and investment property
- Provisions
- Assets impairment
- Taxation
- Cost of sales and cost of completion of infrastructure liability
- Amortization of the discount of present value of notes receivable
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a) Basis of preparation of consolidated financial statements
The consolidated financial statements were prepared in
accordance with the Egyptian Accounting Standards and relevant
local laws and regulations.
The consolidated financial statements are prepared under the
historical cost convention modified for measurement of available
for sale investments, held to maturity investments and investment
at fair value through profit and loss.
The consolidated financial statements are presented in Egyptian
Pounds which presents the functional currency of the group.
The consolidated financial statements are prepared by complying
the same accounting policies for the current year, except the
implementation of the new Egyptian Accounting Standard no. (34)-
Investment Property- issued during 2019 which is applied starting
from or after the financial period January 2019 concerned with
applying the cost model with fair value disclosure-investment
property, but the company couldn't measure its fair value
reliably.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
b) Fixed assets and depreciation
Fixed assets are recorded on purchase at cost and are presented
in the consolidated financial position net of accumulated
depreciation and impairment losses. Historical costs include costs
associated with the purchase of the asset. For assets constructed
internally, the cost of the asset includes the cost of raw
materials, direct labor and other direct costs incurred in bringing
each asset to its location and the purpose for which it was
acquired, as well as the costs of removal and rearrangement of the
site, where the assets are located.
Components are accounted for on an item of fixed assets that
have different useful lives as separate items within those fixed
assets.
The carrying amount of fixed assets includes the cost of
replacing a part or component of such assets when it is expected to
obtain future economic benefits as a result of spending that cost.
Other costs allocated to the consolidated statement of income as an
expense when incurred.
Depreciation is provided on a straight line basis to write off
the cost less estimated residual value of each asset - other than
land. Estimated useful lives are reviewed periodically and on
review base useful lives are adjusted and relevant rates for year
2019 as follows:
MNHD NCCE NCUE
Useful life Useful Useful life
life
Years Years Years
Buildings 40 10-40 20-50
Improvements- Leasehold building 5 or the duration of the lease whichever is lower - -
Improvements- Building owned 8 - -
Machinery & equipment for production - 2-10 2-10
Machinery & equipment 5 - -
Motor vehicles 5 5-10 4-6
Computers and servers 5-8 - -
Programs 3 - -
Tools & equipment 2 4-10 4-12
Furniture & office equipment 2-8 10 10-15
c) Fixed assets under construction
Fixed assets under construction are recorded at cost which
includes all the direct costs incurred on the assets to reach its
final position. These are transferred to fixed assets or investment
property when the asset is complete and ready for its intended use.
Fixed assets under construction are recorded at cost less
impairment, if any.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
d) Available for sales investment
Available for sale investments are initially recorded at cost
and are subsequently measured at fair value. Changes in fair value
are reported as a separate component of other comprehensive income.
Where available for sale investments could not be measured
reliably, as the market for an investment is not active (and for
unlisted securities), these are stated at cost less impairment
losses, if any. Impairment loss is charged to the consolidated
statement of income.
e) Held to maturity investments
Held to maturity investments are carried at amortized cost using
the effective interest method. Premiums or discounts (if any) are
amortized using the effective interest method. When the investment
is impaired, the impairment loss is adjusted against book value and
included in the consolidated statement of income.
f) Investment properties
Investment properties are measured at cost model and
depreciation expense carried to the consolidated statement of
income according to the straight-line method over the estimated
useful life of all investment property except the land. In case of
such assets are impaired, the loss is included in the consolidated
income statement.
g) Investments at fair value through profit and loss
Investments at fair value through profit and loss are initially
recorded at cost and revaluated at the date of consolidated
financial statements at fair value which represents the market
price at the valuation date. Changes in fair value are charged to
the consolidated statement of income.
h) Inventories
Inventories are stated at the lower of cost or net realizable
value. Costs include expenses incurred in bringing each product to
its present location and condition. Cost of raw materials, packing
materials, spare parts, fuel and oil is determined on an weighted
average basis.
Net realizable value is based on estimated selling price less
selling and completion cost.
i) Lands, unfinished and finished properties
All cost incurred on lands, unfinished and finished properties
are included in this account. At point of sale, this account is
adjusted based on actual per meter cost of land or units sold.
Lands, unfinished and finished properties are measured at the lower
of cost and net realizable value. In case of decrease the net
realizable value under the cost, the decrease is charged to the
consolidated statement of income.
j) Consolidated statement of cash flows
Consolidated statement of cash flows is prepared according to
the indirect method
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
k) Cash and cash equivalents
Cash and cash equivalents include cash on hand, time deposits
and treasury bills (due within 3 months), investments at fair value
through profit and loss, bank current accounts, and short term
highly liquid investments, which can be easily converted to cash,
less overdrafts (credit banks) and pledged time deposits against
letters of guarantee.
l) Trade receivables, notes receivables and other debit balances
Trade accounts receivable stated at cost net of allowance for
doubtful debts, which is estimated for amounts not expected to be
collected in full. Other debtors stated at cost less any
impairment.
Notes receivable represents are the value of the Post Dated
Checks (PDCs) obtained from the customers in payment of the
remaining contractual values of the contracted real estate units.
The initial recognition of the notes receivable is at fair value at
the time the contract is entered into with the customers. At the
date of preparation of the consolidated financial statements, notes
receivable are re-measured at amortized cost which is determined by
discounting the future cash flows of the notes receivable using the
rate of return that discounts the nominal value of the instruments
to the current cash price for selling the real estate units.
m) Assets impairment
Non-Financial Assets
At the consolidated financial statements date, the company
reviews the carrying amounts of its owned non financial assets to
determine whether there is any indication that those assets may be
impaired. If any such indication exists, the company estimates the
recoverable amount for each asset separately in order to estimate
the impairment losses. In case the recoverable amount of the asset
cannot be properly estimated, the company estimates the recoverable
amounts for the cash-generating unit which is related to the
asset.
In case of using a reasonable and consistent basis for
allocating of the assets to the cash generating units, the
company's general assets would be also allocated to these units. If
this is unattainable, the general assets of the company shall be
allocated to the smallest group of the cash-generating units, which
the company determined using logical and fixed bases.
The asset recoverable amount or the cash-generating unit is
represented by the higher of the fair value (less the estimated
selling costs) or the estimated amount from the usage of the asset
(or the cash generating unit).
The estimated future cash flow from the usage of the assets, or
the cash generating unit using a discount rate before tax is
discounted in order to reach the present value for these flows
which represents the estimated amount from using the asset (or the
cash generating unit).
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
This rate reflects current market assessments of the time value
of money and the risks specific to the asset, which were not taken
into consideration when estimating the future cash flow generated
from it. When the recoverable amount of the asset (cash generating
unit) is estimated to be less than its carrying amount, the
carrying amount of the asset (cash generating unit) is reduced to
its recoverable amount with the impairment loss recognized
immediately in the consolidated income statement.
In case the impairment on asset (or cash generating unit)
decreases subsequently, and this decrease is related in a logical
manner to one event or more taking place after the initial
recognition of the impairment at the profit or losses, a reversal
is done for the revised amount of losses (or a part of it) - which
had been previously recognized - in the consolidated income
statement, and the carrying amount for the asset is increased (or
the cash generating unit) with the new estimated recoverable amount
provided that the revised carrying amount of the asset after
revising (or the cash generating unit) does not exceed the carrying
amount determined for the asset, had the recognized losses
resulting from impairment, not been recognized in previous
years
Financial Assets
At the consolidated financial statements date, the company
determines whether there is any indication that its financial
assets may be impaired.
Financial assets are exposed to impairment when an objective
evidence that the estimated future cash flow have been affected by
the event or more established at a date subsequent to the initial
recognition of the financial asset.
The carrying value of all financial assets is reduced directly
with the impairment losses except those related to the reduction in
the expected value of the collections from the customers debts and
other debit balances, where a formed allowances for impairment loss
is done on its value. When the debt of the clients or the owner of
the debit balance is uncollectible, a written off discount is
applied upon this account. All the changes in the book value
relating to this account are recognized in the consolidated income
statement.
n) Provisions
Provisions are recognized when there is a present obligation
(legal or constructive) as a result of a past event, it is probable
an outflow of resources embodying economic benefits will be
required to settle this obligation and a reliable estimate can be
made for the obligation.
Provisions are reviewed at the consolidated statement of
financial position date and adjusted (if necessary) to present the
best current estimate.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
o) Unearned revenue, payables and other credit balances
The value of unearned revenues on real estate units (villas,
townhouses, twin houses, apartments and garages) contracted for
sale and were not delivered to customers on the date of the
consolidated statement of financial position is recorded as a
liability at the cash price of those units (after discounting the
future contractual value of these units to reach the cash sale
price). These balances are recognized as sales income in the
consolidated statement of income on the date of delivery.
Liabilities are recognized for amounts to be paid in the future
for goods received or services rendered to the company, whether
billed or not billed by the supplier.
p) Treasury stocks
Treasury stocks are recorded at cost and deducted from
shareholders equity. Gain or loss from sale of shares is included
in the retained earnings.
q) Dividends
Dividends are recorded as liability during the year when
declared.
r) Revenue recognition
1. Cash sales
Sales of land and property is recoded after collection of the
agreed upon price and delivery to the customer in accordance with
the terms of the contract.
2. Installment Sales
- Total sale of value of land and property is recorded as sales
during the period after deduction of profit relating to deferred
installments on those sales. Such deduction is recorded as a
liability (profit from deferred installments) when the following
terms for sales are met as:
-- The risk and rewards of ownership of units sold is not
transferred to the buyer until settlement of all installments due
from the buyers and the transfer of ownership to buyer.
-- The company has the right of managerial intervention and
supervision on units sold to guarantee that the buyer is a biding
by the contractual terms.
-- According to the signed contracts with the customers, the
company has the right to cancel the contracts if all installments
due were not paid.
- Deferred installments profit and deferred interests on
installments which related to sale of land and properties in prior
years are recognized on the accrual basis when the installments
full due adjusting the profit margin by cost incurred on projects
during the year.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
3. Revenue from real estate contracts
The company is performing the activity of real estate and
marketing to this activity through customers' contracts which give
them the right to have real estate villa, ton house and unit over
the period of the contract. Revenue recognized from sales
agreements according to the stages included in the sales agreements
according to the following:
-- Development of land for construction of real estate
-- Construction of the building
-- Finishing of units
4. Joint arrangement
A joint arrangement is an arrangement in which two or more
parties have joint control. It is either a joint operation or a
joint venture. A joint arrangement is that the parties are bound by
a contractual agreement granting joint control to two or more
parties of the arrangement.
The classification of a joint arrangement as a joint operation
or a joint venture depends on the rights and obligations
(undertakings) of the parties to the arrangement. The joint
operation becomes a joint arrangement when its parties have joint
control over the rights over the assets and the obligations
associated with the arrangement. These parties are called joint
operators. A joint venture is a joint arrangement when its parties
have joint control over the rights over the net assets associated
with the arrangement. These parties are called shareholders in
joint ventures. The entity shall apply the judgment in assessing
whether the joint arrangement is a joint venture or a joint
venture.
The joint operator shall account for assets, liabilities, income
and expenses related to its share in the joint operation in
accordance with the Egyptian Accounting Standards applicable to
such assets, liabilities, revenues and expenses.
On 31 December 2015, the Company adopted a new strategy to
execute a joint venture development contract based on a share in
the revenue of the sales. The Company receives its share against
the land provided for development by the other co-developer who
will receive the rest of the sale revenue against incurring the
development cost.
5. Other revenue:
- Rent, time deposits interest and bonds revenue recorded on the accrual basis.
- Dividends revenue are recognized and recorded as income when
they become legally payable by the investee companies and realized
after acquisition date.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
6. Contracting Revenue
Contacting revenue of the two subsidiary companies included
value of contracts with customers, approved change orders,
incentives, and other claims. Revenue from contracting is
recognized following percentage-of-completion method.
s) Direct and indirect cost
Direct and indirect costs incurred for the constructions of the
real estate are accumulated in the lands, unfinished and finished
properties inventory account. Cost of the completed units are
comprises of land cost, cost of building constructed and other
indirect costs.
t) Operating rent
Operating rent are recorded in the consolidated statement of
income on a straight line method over the rent period.
u) Employees' benefits
The company contributes to the social insurance scheme for the
benefit of its employees in accordance with the Social Insurance
Law. Contributions of workers and employers are calculated at a
fixed rate of wages. The company's commitment is represented in
value of its contribution. The company's contributions are charged
to the statement of income. The company gives employees who have
reached retirement age, end of service gratuity up to a maximum of
50 thousand Egyptian pounds. The Company also applies an optional
early retirement scheme. End of service benefits for employees
benefiting from this system are charged to the consolidated
statement of income in the period in which they are approved for
early retirement.
v) Taxation
Income tax
Taxation is accounted according to Egyptian laws and
regulations.
Income tax expense that is calculated on the profits of the
company represents the sum of the tax currently payable (calculated
according to the applied laws and regulations and using the tax
rates prevailing as of the consolidated financial statements date)
and deferred tax. Current and deferred taxes are recognized as
income or expenses and included in the profits or losses of the
period except for instances that taxes are established from:
-- A transaction or event recognized, in the same period or
other period, outside profit or loss either in other comprehensive
income or directly in equity, or
-- Business combinations.
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Deferred tax is recognized on temporary differences between the
carrying amounts of assets and liabilities according to the
accounting basis used in the consolidated financial statements and
the corresponding tax bases used in the computation of taxable
profit. Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the period in which the
liability is settled or the asset realized, based on tax rates that
have been enacted or substantively enacted at the consolidated
financial statements date.
Deferred tax liabilities are generally recognized (generated
from taxable temporary differences in the future) while deferred
tax assets recognized for all deductible temporary differences to
the extent that it is probable that taxable profits will be
available against which those deductible temporary differences can
be utilized.
The carrying amount of deferred tax assets is reduced to the
extent that it is no longer probable that sufficient taxable
profits will be available in future years to allow all or part of
the asset to be recovered. The balance sheet method is used in
accounting for deferred assets and liabilities and they are
recognized as non-current assets and liabilities.
w) Earnings per share
Earnings per share are calculated by dividing the net profit for
the period after deduct employees share in profit and Board of
Directors remuneration by the weighted average number of
outstanding shares during the year.
x) Borrowing cost
Borrowing costs directly attributable to the acquisition,
construction or production of a qualified asset for capitalization
of cost of borrowing; are capitalized as part of the cost of the
asset. Other borrowing costs are charged as an expense in the
consolidated statement of income on a time-apportioned basis using
the effective interest rate.
y) Legal reserve
As required, by the Companies Law No. 159 of 1981 and the
company's Articles of Association 5% of the profit for the year is
transferred to the legal reserve. The company may resolve to
discontinue such annual transfers when the reserve totals 50% of
the issued share capital. The legal reserve cannot be distributed
except in cases stated in the Law.
z) Foreign currency transactions
The company's functional currency is the Egyptian pound.
Transactions in foreign currencies are recorded at the rate ruling
at the date of the transaction. Monetary assets and liabilities
denominated in foreign currencies at the consolidated financial
statements date are translated at the rate of exchange ruling at
that date. Retranslation exchange profit and loss is taken to the
consolidated statement of income.
4/1 FIXED ASSETS
Land Buildings and Machinery Motor Tools Furniture Computers Total
(*) constructions & vehicles & office & software
(*) equipment equipment
L.E. L.E. L.E. L.E. L.E. L.E. L.E. L.E.
Cost:
At 1 January
2019 1,660,315 28,265,598 37,216,903 17,781,535 3,905,784 17,387,432 27,041,081 133,258,648
Additions
during the
period - 520,101 - 1,090,600 71,013 1,073,747 3,853,559 6,609,020
Transferred
from fixed
assets under
construction
(4/2) - 576,804 435,259 - - - - 1,012,063
Disposals
during the
period - - (36,122) - (156,783) (10,499) - (203,404)
At 30
September
2019 1,660,315 29,362,503 37,616,040 18,872,135 3,820,014 18,450,680 30,894,640 140,676,327
---------- -------------- ----------- ----------- ---------- ----------- ----------- ------------
Accumulated
depreciation:
At 1 January
2019 - 7,388,783 29,138,897 16,685,952 3,525,878 11,128,254 10,945,466 78,813,230
Provided
during the
period - 1,720,907 2,996,595 500,876 55,249 1,630,981 5,485,316 12,389,924
Disposals
during the
period - - (36,122) - (156,783) (7,220) - (200,125)
---------- -------------- ----------- ----------- ---------- ----------- ----------- ------------
At 30
September
2019 - 9,109,690 32,099,370 17,186,828 3,424,344 12,752,015 16,430,782 91,003,029
---------- -------------- ----------- ----------- ---------- ----------- ----------- ------------
Net book
value:
At 30
September
2019 1,660,315 20,252,813 5,516,670 1,685,307 395,670 5,698,665 14,463,858 49,673,298
========== ============== =========== =========== ========== =========== =========== ============
At 31 December
2018 1,660,315 20,876,815 8,078,006 1,095,583 379,906 6,259,178 16,095,615 54,445,418
========== ============== =========== =========== ========== =========== =========== ============
(*) Land and buildings includes land and buildings of the social
club and the playground rented for Madinet Nasr for Housing and
Development club by book value approximately L.E. 1.3 million and
L.E. 4.5 million for land and buildings respectively, also the
buildings and constructions of El Nasr for Utilities on a plot of
land of 7,780 M(2) by a usufruct right for the company with
unlimited period and there are negotiation to purchase this
land.
4/1 FIXED ASSETS - Continued
a) Fully depreciated assets and still operating are as follows:
30/9/2019 31/12/2018
L.E. L.E.
Buildings and constructions 817,518 728,518
Motor vehicles 15,436,829 14,987,989
Furniture and office equipment 6,300,182 4,607,960
Machinery and equipment 21,093,745 17,681,571
Computers and software 3,072,377 228,491
Tools 3,084,957 3,238,300
49,805,608 41,472,829
=========== ===========
b) Depreciation for the period is allocated as follows:
30/9/2019 30/9/2018
L.E. L.E.
Cost of sales 2,912,295 3,588,856
Selling & marketing expenses (Note 25) 2,138,019 1,140,363
General and administrative expenses (Note 26) 7,339,610 2,986,281
12,389,924 7,715,500
=========== ==========
4/2 FIXED ASSETS UNDER CONSTRUCTION
30/9/2019 31/12/2018
L.E. L.E.
Balance at the beginning of the year 17,482,227 10,106,923
Additions during the period/year 716,770 9,203,809
Transferred to fixed assets (Note
4/1) (1,012,063) (1,828,505)
Balance at the end of the period/year
(Parent Co.) 17,186,934 17,482,227
------------ ------------
Al Nasr Company for Civil Works 639,583 639,583
------------
17,826,517 18,121,810
============ ============
5. INVESTMENTS
5/1 Held to maturity investments
30/9/2019 31/12/2018
L.E. L.E.
Investments in Governmental bonds (unlisted) 672,200 672,200
========== ===========
5. INVESTMENTS - Continued
5/2 Available for sale investments
Contribution 30/9/2019 31/12/2018
% L.E. L.E.
Egyptian Kuwaiti Real Estate Development (*) 7.503 4,314,110 4,314,110
High Education House (S.A.E.) (*) 1.76 300,000 300,000
El Nasr Transformers & Electrical Products Co. (El-Maco) 0.01 19,200 19,200
El Nasr Co. for Clay Brick Production (*) 0.8 200,000 200,000
4,833,310 4,833,310
========== ===========
(*) Available for sale investments are not traded in active
market, the management point of view that there is no material
variance between the cost and the fair value.
5/3 Investments properties
30/9/2019 31/12/2018
L.E. L.E.
Land held for investment purpose 9,165,251 8,753,036
Held land ownership on sold properties 3,427,692 3,427,692
Rented building - Net (*) 633,921 678,537
13,226,864 12,859,265
=========== ===========
Fair value of investment properties is not less than its book
value.
(*) Rented buildings (Net)
Residential units None residential units Total
L.E. L.E. L.E.
Cost:
At 1 January 2019 and 30 September 2019 545,997 2,645,758 3,191,755
------------------ ----------------------- ----------
Accumulated depreciation:
At 1 January 2019 457,863 2,055,355 2,513,218
Provided during the period
(Note 23-b) 6,985 37,631 44,616
At 30 September 2019 464,848 2,092,986 2,557,834
------------------ ----------------------- ----------
Net book value:
At 30 September 2019 81,149 552,772 633,921
================== ======================= ==========
At 31 December 2018 88,134 590,403 678,537
================== ======================= ==========
5. INVESTMENTS - Continued
- Fully depreciated investment properties and still used are as follows:
30/9/2019 31/12/2018
L.E. L.E.
Residential units 109,417 109,417
Non-residential units 300,737 300,737
410,154 410,154
========== ===========
5/4 Investments at fair value through profit and loss
30/9/2019 31/12/2018
L.E. L.E.
Investment certificates in:
Bank Misr Investment Fund (Day-By-Day) 304,554 275,845
QNB Investment Fund 1,202,079 1,098,849
Banque Du Caire Investment Fund 64,500 776,798
United Bank Investment Fund (*) 11,040,597 9,996,054
SAIB Investment Fund - 21,958
12,611,730 12,169,504
=========== ===========
(*) United Bank Investment Fund (Rakhaa) includes pledged
investment certificates by L.E. 10,164,807 against letters of
guarantee as of consolidated financial statement date. (Note
20)
5/5 Held to maturities investments - Treasury Bills
30/9/2019 31/12/2018
L.E. L.E.
Treasury Bills - 63 days - 14,600,000
Treasury Bills - 90 days 104,325,000 -
Treasury Bills - 124 days - 106,500,000
Less:
Not accrued interest (671,366) (5,206,203)
103,653,634 115,893,797
============ ============
Treasury bills are classified as follows:
30/9/2019 31/12/2018
L.E. L.E.
Treasury bills matures within 3 months (Note 20) 103,653,634 14,600,000
Treasury bills matures more than 3 months - 101,293,797
103,653,634 115,893,797
============ ============
6. INVENTORIES
30/9/2019 31/12/2018
L.E. L.E.
Materials 48,818,199 47,593,662
Fuel and oil 60,445 89,931
Spare parts and supplies 4,130,099 1,612,819
Others (materials on site & WIP) 16,875 5,902,661
----------- -----------
53,025,618 55,199,073
Less: Decrease in inventory (400,000) (400,000)
52,625,618 54,799,073
=========== ===========
7. LANDS, UNFINISHED AND FINISHED PROPERTIES
30/9/2019 31/12/2018
L.E. L.E.
Lands and unfinished properties:
El Waha 17,341,943 46,841,246
6th October 211,920,429 203,688,887
Tag City 1,529,917,908 793,409,875
Nasr City (Main City) 1,046,792 1,046,791
Sarai City 504,822,810 410,193,311
2,265,049,882 1,455,180,110
-------------- --------------
Finished properties:
El Waha 6,680,048 6,680,048
Nasr City (Main City) 11,587,224 11,587,224
6th October 60,278,442 60,278,442
-------------- --------------
78,545,714 78,545,714
Total lands, unfinished and finished properties 2,343,595,596 1,533,725,824
============== ==============
(*) The main development "Taj City" includes the stages that
have been launched for sale: "Taj Sultan", "Zone T", "Zone B",
"Zone A - CBD". In addition to the stages not yet put up for sale,
the balance on September 30, 2019 represents the cost of the work
of external and internal facilities and construction
Lands, unfinished and finished properties has been recorded at
cost which is not less than net realizable value as the
consolidated financial statements date.
8. TRADE AND NOTES RECEIVABLE
30/9/2019 31/12/2018
L.E. L.E.
Long term notes receivable
Tag Sultan customers 324,266,901 339,937,210
Tag City customers (Zone T) 1,788,492,654 2,040,268,312
Tag City customers (Zone B) 1,383,775,603 1,470,693,448
Tag City customers (Zone A) 265,681,381 -
Premira customers 46,701,696 63,480,106
Capital Gardens customers (*) 314,559,081 376,806,276
Sarai City (1) customers 731,529,408 917,561,199
Sarai City (2) customers 2,006,410,838 1,978,825,254
Sarai City (3) customers 352,457,764 317,033,107
El Waha and Nasr city 73,155,569 -
Lands customers 20,747,344 -
Total long term notes receivables 7,307,778,239 7,504,604,912
---------------- ----------------
Less: Present value discount
Tag Sultan (52,601,673) (56,209,331)
Tag City (Zone T) (277,577,579) (331,669,477)
Tag City (Zone B) (198,017,722) (238,347,477)
Tag City (Zone A) (51,162,327) -
Premira (15,441,267) (20,754,041)
Capital Gardens (*) (120,806,805) (153,670,025)
Sarai City (1) (101,927,387) (138,844,423)
Sarai City (2) (320,748,174) (367,285,477)
Sarai City (3) (52,099,258) (48,542,353)
---------------- ----------------
Total present value discount (1,190,382,192) (1,355,322,604)
----------------
Net long term notes receivables 6,117,396,047 6,149,282,308
================ ================
Short term notes receivable
Tag Sultan customers 194,412,290 229,264,003
Tag City customers (Zone T) 600,125,399 573,873,051
Tag City customers (Zone B) 397,983,692 380,222,994
Tag City customers (Zone A) 52,065,693 -
Premira customers 24,606,002 34,611,060
Capital Gardens customers (*) 88,698,537 90,767,155
Sarai City (1) customers 280,465,830 281,999,760
Sarai City (2) customers 625,781,723 576,448,134
Sarai City (3) customers 93,751,279 72,052,779
El Waha and Nasr city 23,921,930 -
Land customers 38,342,749 -
2,420,155,124 2,239,238,936
================ ================
8. TRADE AND NOTES RECEIVABLE - Continued
30/9/2019 31/12/2018
L.E. L.E.
Trade receivables
Tag Sultan 17,878,178 9,133,903
Tag City (Zone T) 139,814,017 124,501,331
Tag City (Zone B) 84,537,781 32,555,901
Tag City (Zone A) 19,817,216 -
Premira 1,146,032 741,706
Sarai City (1) 57,595,550 32,253,825
Sarai City (2) 156,903,909 108,857,586
Sarai City (3) 38,512,090 7,384,828
El Waha and Nasr City 64,329,328 192,539,232
Land 36,372,685 90,408,858
Rent 1,393,395 1,361,496
Other trade receivables 358,231 -
Construction contracts 444,245,659 410,169,590
-------------- --------------
1,062,904,071 1,009,908,256
Less: Deferred profit & interest on outstanding installments (Note 15) (160,251,669) (183,956,762)
Less: Impairment of trade receivables (49,789,520) (49,789,520)
852,862,882 776,161,974
============== ==============
(*) Capital Gardens' development represents joint operation
between the company and Palm Hills for Development Company S.A.E.
in accordance with the signed contract on 5 July 2015, the
company's share is 36% of total operation's revenues. (Note 22)
9. TRADE PAYABLES - DEBIT BALANCES - NET
30/9/2019 31/12/2018
L.E. L.E.
Trade payables & contractors 604,714,416 284,892,463
Less: Impairment in trade payables - debit balances (48,010,594) (57,809,677)
556,703,822 227,082,786
============= =============
10. DEBTORS AND OTHER DEBIT BALANCES - NET
30/9/2019 31/12/2018
L.E. L.E.
Cheques under collection 312,966 202,968
Prepaid expenses 300,265,751 237,589,608
Accrued income 3,179,796 1,738,534
Refundable deposits 25,502,748 21,558,357
Other debit balances 8,687,095 1,338,184
------------ ------------
337,948,356 262,427,651
Less: Impairment in debtors and other debit balances (63,160) (63,160)
337,885,196 262,364,491
============ ============
11. CASH AND BANK BALANCES
30/9/2019 31/12/2018
L.E. L.E.
Cash on hand 764,483 674,982
Bank current accounts with return 783,869,348 395,227,644
Time deposits (*) 98,662,458 89,689,780
883,296,289 485,592,406
============ ============
(*) Time deposit on 30 September 2019 included L.E. 92,354,726
(2018: L.E. 88,682,048) pledged time deposits against letters of
guarantee. (Note 20)
12. UNEARNED REVENUES
30/6/2019 31/12/2018
L.E. L.E.
Tag Sultan 222,410,786 203,252,824
Premira 5,427,122 31,162,943
Zone T 2,219,260,568 2,131,674,074
Zone B 1,481,294,247 1,316,699,988
Zone A 158,130,856 -
Capital Gardens 133,538,955 134,825,919
Sarai City(1) 881,745,572 864,952,324
Sarai City(2) 2,036,992,443 1,829,635,619
Sarai City(3) 248,138,838 182,719,174
7,386,939,387 6,694,922,865
-------------- ==============
13. PROVISIONS
Balance at Provided during Used during the No longer Balance at
1/1/2019 the period period required 30/9/2019
L.E. L.E. L.E. L.E. L.E.
Disputed taxes
provision 11,978,471 - - - 11,978,471
Claims provision 50,091,295 - (1,000,000) - 49,091,295
Legal provision 24,026,728 - (547,198) - 23,479,530
General provision 15,000,000 - - - 15,000,000
Other provisions 22,946,921 - - - 22,946,921
124,043,415 - (1,547,198) - 122,496,217
================== ================= ================== ================== ==================
14. PROJECT INFRASTRUCTURE COMPLETION LIABILITIES
Balance at 1/1/2019 Provided / (returns) Work executed Balance at 30/9/2019
L.E. L.E. L.E. L.E.
Tag City 48,802,876 42,920,727 (83,252,594) 8,471,009
Sarai City 58,596,511 43,937,540 (19,542,837) 82,991,214
Capital Gardens 4,311,597 (64,549) - 4,247,048
El Waha 4,842,034 3,879,702 (8,280,558) 441,178
116,553,018 90,673,420 (111,075,989) 96,150,449
==================== ===================== ============== =====================
15. DEFERRED PROFIT & INTEREST ON OUTSTANDING INSTALLMENTS
Land Properties Total
L.E. L.E. L.E.
30/9/2019
Balance at beginning of the period 40,386,717 143,570,045 183,956,762
Additions during the period 6,217,708 - 6,217,708
Due during the period (Note 23-a) (7,144,116) (21,771,009) (28,915,125)
Disposals during the period - (1,007,676) (1,007,676)
Balance at the end of the period (Note 8) 39,460,309 120,791,360 160,251,669
============= ============= =============
31/12/2018
Balance at beginning of the year 48,852,758 177,958,402 226,811,160
Additions during the year 14,685,971 - 14,685,971
Due during the year (Note 23-a) (19,025,841) (32,872,543) (51,898,384)
Disposals during the year (4,126,171) (1,515,814) (5,641,985)
Balance at the end of the year (Note 8) 40,386,717 143,570,045 183,956,762
============= ============= =============
16. CREDITORS AND OTHER CREDIT BALANCES
30/9/2019 31/12/2018
L.E. L.E.
Notes payable 170,635,583 58,368,017
Notes payable - Land purchase (*) 39,255,924 39,255,924
Support to National Housing Project 880,000 880,000
Down payment for land & property sales (El Waha & 6th October) 33,881,317 16,207,949
Customers collection (Gas, water) 854,655 1,791,217
Selling and marketing commissions 11,229,991 12,281,600
Accrued employees' bonus 8,154,789 8,154,789
Contractors under settlement 28,103,091 14,167,814
Engineering stamp and Building Union stamp 237,300 172,603
Customers' balances for cancelled reservations 13,115,179 13,144,322
Proceeds for maintenance expenses and counters 11,738,093 9,359,761
Accrued interest on term loans 23,461,673 16,679,297
Customers' deposits under settlement 12,219,252 921,700
Governmental authorities 50,569,360 46,631,880
Accrued expenses 14,947,025 5,363,225
Early retirement benefits and others 253,163 1,700,630
Comprehensive medical care 4,369,195 4,031,616
Other 1,206,538 1,708,778
425,112,128 250,821,122
============ ============
16. CREDITORS AND OTHER CREDIT BALANCES - Continued
(*) The Company has purchased pieces of lands in Tag City
project during 2018 from its own Customers by L.E. 100,009,500 and
it has paid 20% as an advance payment of total lands price, the
rest amount against notes payable over (8) quarterly advances ended
in year 2020.
30/9/2019 31/12/2018
L.E. L.E.
Purchase price 100,009,500 100,009,500
Less: Advance payment (20%) (20,001,900) (20,001,900)
------------- -------------
80,007,600 80,007,600
Less:
Settlement (**) (1,495,752) (1,495,752)
Payments during the period (29,441,943) -
49,069,905 78,511,848
============= =============
The balance classified in consolidated financial statements as
follows:
Al Nasr Company for Civil Works 30/9/2019 31/12/2018
L.E. L.E.
Non current liabilities:
Long term notes payable - Madinet Nasr for Housing and Development 9,813,981 39,255,924
----------- -----------
Current liabilities:
Short term notes payable - Madinet Nasr for Housing and Development 39,255,924 39,255,924
49,069,905 78,511,848
=========== ===========
(**) The rest of amounts due from the company's customers
regarding previously sold lands to its customers were settled
against purchase of lands.
Which include long-term note payable for Al-Nasr Company for
civil works by amount L.E 13,475,529 to become total long-term note
payable amount L.E. 23,289,510.
17. SHARE CAPITAL
Authorized capital:
The authorized capital is five billion Egyptian Pounds.
30/9/2019 31/12/2018
L.E. L.E.
Issued and paid up:
1.44 billion shares (2018: 1.2 Billion shares) - The value of each share is one
Egyptian pound 1,440,000,000 1,200,000,000
============== ==============
17. SHARE CAPITAL - Continued
Following are a list of percentage of shares of issued and paid
up capital for shareholders as of 30 September 2019:
No. of shares Nominal Contribution
Value %
L.E.
BIG Investment Group Ltd. 286,309,039 286,309,039 19.88%
Holding Co. for Construction and Development 218,742,298 218,742,298 15.19%
B Investment Holding co. 107,355,324 107,355,324 7.46%
National Investment Bank 53,069,241 53,069,241 3.68%
Al Alian Co. for Investments Ltd. 50,963,824 50,963,824 3.54%
Banque Misr 45,627,636 45,627,636 3.17%
Other shareholders 677,932,638 677,932,638 47.08%
1,440,000,000 1,440,000,000 100%
============== ============== =============
List of percentage of shares of issued and paid up capital for
shareholders as of 31 December 2018 is as follows:
Name No. of shares Nominal value Contribution
%
L.E. L.E.
BIG Investment Group Ltd. 238,590,867 238,590,867 19.88%
Holding Co. for Construction and Development 182,285,249 182,285,249 15.19%
BPI Holding for Financial Investments S.A.E. 89,462,770 89,462,770 7.45%
National Investment Bank 44,224,368 44,224,368 3.69%
Al Olayan Saudi Investment Co. Ltd. 42,303,187 42,303,187 3.53%
Misr Banque 38,023,030 38,023,030 3.17%
Other shareholders 565,110,529 565,110,529 47.09%
1,200,000,000 1,200,000,000 100.00%
============== ============== =============
18. NON-CONTROLLING INTEREST
30/9/2019 31/12/2018
Non-controlling interest in Non-controlling interest Non-controlling interest
net assets share in net assets share in net assets
% L.E. L.E.
Al Nasr Company for Civil
Works 47.54 97,360,268 97,821,365
Al Nasr Company for
Utilities & Erection 0.79 (1,724,316) (1,685,205)
Total non-controlling
interest 95,635,952 96,136,160
=========================== ============================
19. TERM LOANS
Madinet Nasr for Housing & Development S.A.E.
(A) (B) (B)
National Arab Investment Commercial Total
Investment Bank International
Bank Bank
L.E. L.E. L.E. L.E.
30/9/2019
Balance at the beginning
of the period 1,237,813 - 375,310,381 376,548,194
Proceeds during the period - - 293,325,358 293,325,358
Installments paid during
the period (491,458) - (102,957,477) (103,448,935)
Balance at the end of
the period 746,355 - 565,678,262 566,424,617
============ ================ =============== ==============
Classified in financial
position as follows:
Current liabilities:
Current portion of term
loans 430,219 - 62,386,160 62,816,379
============ ================ =============== ==============
Non-current liabilities:
Term loans 316,136 - 503,292,102 503,608,238
============ ================ =============== ==============
31/12/2018
Balance at the beginning
of the year 1,694,337 2,026,971 381,323,986 385,045,294
Proceeds during the year - - 209,966,744 209,966,744
Installments paid during
the year (456,524) (2,026,971) (215,980,349) (218,463,844)
Balance at the end of the
year 1,237,813 - 375,310,381 376,548,194
============ ================ =============== ==============
Classified in financial
position as follows:
Current liabilities:
Current portion of term
loans 491,458 - 137,276,635 137,768,093
============ ================ =============== ==============
Non-current liabilities:
Term loans 746,355 - 238,033,746 238,780,101
============ ================ =============== ==============
20. CASH AND CASH EQUIVALENTS
Cash and cash equivalents included in the consolidated statement
of cash flows comprise the following consolidated financial
position amounts:
30/9/2019 31/12/2018
L.E. L.E.
Cash and bank balances (Note 11) 883,296,289 485,592,406
Investment at fair value through profit and loss (Note 5/4) 12,611,730 12,169,504
Investment held to maturity - short term (Note 5/5) 103,653,634 14,600,000
Less:
Credit banks - credit facilities (Note 20/2) (211,576,325) (66,295,682)
------------- ------------
Cash and cash equivalents at the end of the period/year 787,985,328 446,066,228
Less:
Pledged time deposits against letters of guarantee (Note 11) (92,354,726) (88,682,048)
Pledged investment certificates against letters of guarantee (Note 5/4) (10,164,807) (9,203,122)
Cash and cash equivalents at the end of the period/year 685,465,795 348,181,058
============= ============
20/1 SHORT TERM LOAN
30/9/2019 31/12/2018
L.E. L.E.
Balance at the beginning of the period/year 111,666,664 56,875,747
Proceeds during the period/year 400,000,000 335,010,373
Installments and interests paid during the period/year (278,333,680) (280,219,456)
Balance at the end of the period/year 233,332,984 111,666,664
============== ==============
20/2 CREDIT BANKS -CREDIT FACILITIES
The balance of credit banks are summarized as follows:
30/9/2019 31/12/2018
L.E. L.E.
Madinet Nasr for Housing Development (Parent company) 156,184,295 12,231,854
Al Nasr Company for Civil Works (Subsidiary) 55,312,603 53,984,401
Al Nasr Company for Utilities and Installations (Subsidiary) 79,427 79,427
211,576,325 66,295,682
============ ===========
21. BANK DEPOSITS OF COMPOUNDS FACILITY MANAGEMENT
30/9/2019 31/12/2018
L.E. L.E.
Bank current saving accounts 20,737,864 11,082,624
Time deposits 332,958,929 286,322,778
Cheques under collection 37,387,242 35,585,953
Accrued revenues 2,983,179 5,496,754
------------ ------------
Bank deposits of compounds facility management 394,067,214 338,488,109
Amounts under settlement (3,884,424) 1,824,104
------------ ------------
Liabilities of compounds facility management 390,182,790 340,312,213
============ ============
The checks received from the customers for the compounds
facility management amounted to L.E. 1,253,955,258 (2018: L.E.
1,101,300,866), including collections of L.E. 394,067,214 (2018:
L.E. 338,488,109) invested in deposits and interest-bearing bank
accounts. The remaining balance amounting to L.E. 859,888,044 is
notes receivable at 30 September 2019 (2018: L.E. 762,812,758) and
will be collected on maturity dates during the subsequent periods.
The deposit's term ranges from 1 to 6 months.
22. TRANSACTIONS WITH RELATED PARTIES
Nature of relationship Nature of Balance at Balance at
Account 30/9/2019 31/12/2018
L.E. L.E.
Long term
Capital Gardens project Joint operation notes payable 314,559,081 376,806,276
Discount of
present value (120,806,805) (153,670,025)
-------------- --------------
Net 193,752,276 223,136,251
Short term
notes payable 88,698,537 90,767,155
282,450,813 313,903,406
============== ==============
23. REVENUES AND COST OF REVENUES
23-a Net Revenues
30/9/2019 30/9/2018
L.E. L.E.
Property sales revenue
Tag Sultan 146,073,006 235,644,325
Premira 26,740,217 102,780,982
Tag city (Zone T) 133,213,286 96,133,265
Tag city (Zone B) 136,219,552 350,857,148
Tag city (Zone A) 50,348,546 -
Capital Gardens 6,385,725 88,488,384
Sarai 1 22,680,086 212,989,414
Sarai 2 348,270,194 115,952,788
Sarai 3 78,398,902 108,152,024
El Waha - 120,000
-------------- --------------
Property sales revenue 948,329,514 1,311,118,330
Land sales - El Waha and Original
City 49,592,360 214,280,140
Land sales - Tag City (Zone A) 115,205,441 -
Total property and land sales revenues 1,113,127,315 1,525,398,470
-------------- --------------
Total revenues - Al Nasr Company
for Civil Works 164,812,065 254,841,675
Total revenues - Al Nasr Company
for Utilities & Erections 90,040,108 79,675,535
Less: Property sales returns
Tag Sultan (9,493,273) (1,366,350)
Premira - (244,400)
Tag City (Zone T) (68,320,496) (32,744,585)
Tag City (Zone B) (51,881,073) (7,817,419)
Tag City (Zone A) (1,443,903) -
Capital Gardens (8,302,519) (4,611,318)
Sarai 1 (23,373,712) (6,569,421)
Sarai 2 (123,862,597) (68,476,774)
Sarai 3 (12,979,344) -
El Waha - (1,653,494)
-------------- --------------
Total property sales returns (299,656,917) (123,483,761)
Net sales 1,068,322,571 1,736,431,919
-------------- --------------
Amortization of the present value
of notes receivable 340,868,875 281,114,154
Profit and interest from deferred
sales installment during the period 28,915,125 41,410,524
Land and property rent 916,139 909,588
Net sales 1,439,022,710 2,059,866,185
============== ==============
23. REVENUES AND COST OF REVENUES - Continued
23-b Cost of Revenues
30/9/2019 30/9/2018
L.E. L.E.
Cost of sold property
Tag Sultan 98,589,190 222,314,275
Premira 35,875,001 121,199,445
Tag City (Zone T) 17,041,352 8,534,604
Tag City (Zone B) 26,555,784 39,090,999
Tag City (Zone A) 5,650,843 -
Capital Garden 165,986 2,629,994
Sarai 1 5,991,700 32,505,517
Sarai 2 46,909,916 21,486,253
Sarai 3 5,198,952 6,960,009
------------- -------------
Cost of buildings sold 241,978,724 454,721,096
Cost of land sold - El Waha 3,046,929 3,331,709
Cost of land sold - Tag City (ZoneA) 17,690,400 -
Total cost of buildings and land
sold 262,716,053 458,052,805
------------- -------------
Cost of revenue for El Nasr Company
for Civil Works 143,070,886 155,566,905
Cost of revenue for El Nasr Company
for Utilities and Erections 86,802,096 81,504,485
Less: Cost of sold property returns:
Tag Sultan (3,038,721) (750,471)
Premira - (61,107)
Tag City (Zone T) (6,268,875) (2,950,870)
Tag City (Zone B) (5,479,031) (882,894)
Tag City (Zone A) (170,652) -
Capital Garden (298,058) (157,264)
Sarai 1 (4,030,474) (1,226,607)
Sarai 2 (25,732,743) (13,161,796)
Sarai 3 (820,402) -
El Waha - (283,406)
------------- -------------
Total cost of property sales returns (45,838,956) (19,474,415)
------------- -------------
Net cost of sales 446,750,079 675,649,780
------------- -------------
Depreciation of property investments
(Note 5/3) 44,616 45,792
Cost of property investments 13,863 -
Cost of activity revenues 446,808,558 675,695,572
============= =============
24. CONSTRUCTIONS COMMITMENTS
Al Nasr Co. for Civil Works - (Subsidiary Company)
Contracts for executing utilities and civil constructions
amounted to L.E. 3,387 million at 30 September 2019, while the
executed amount till that date amounted to L.E. 2,813 million.
Al Nasr Utilities and Installations Co. - (Subsidiary
Company)
Contracts for executing utilities and civil constructions
amounted to L.E. 328,1 million at 30 September 2019, while the
executed amount till that date amounted to L.E. 97,9 million.
25. SELLING AND MARKETING EXPENSES
30/9/2019 30/9/2018
L.E. L.E.
Salaries and wages 7,930,510 1,297,187
Selling and marketing commissions 40,945,720 46,357,248
Advertisements (including stamp tax) 85,356,241 82,887,305
Rent 9,022,157 6,959,848
Professional fees 197,034 2,120,350
Depreciation (Note 4/1) 2,138,019 1,140,363
Sundry expenses 4,884,418 4,732,337
150,474,099 145,494,638
============ ============
26. GENERAL AND ADMINISTRATIVE EXPENSES
30/9/2019 30/9/2018
L.E. L.E.
Salaries, wages and equivalent 36,846,534 25,816,268
Board of Directors wages and allowances 7,922,487 6,546,870
Depreciation (Note 4/1) 7,339,610 2,986,281
Other expenses 49,716,709 35,602,909
101,825,340 70,952,328
============ ===========
27. FINANCE REVENUE
30/9/2019 30/9/2018
L.E. L.E.
Revenue from investments at fair value through
profit and loss 1,275,868 1,221,856
Income from interest and bank deposit 53,197,277 26,767,983
Revenue from Treasury Bills 13,616,039 -
68,089,184 27,989,839
=========== ===========
28. OTHER OPERATING REVENUE
30/9/2019 30/9/2018
L.E. L.E.
Administrative expenses from customers (for redemption, assignment, etc.) 51,824,299 28,970,140
Delay fines on customers 16,271,684 6,448,745
Delay penalty on contractors 222,539 -
Sundry revenue 11,108,870 2,316,075
Gain on foreign exchange - 34,192
Gain on sale of raw materials - 105,425
Capital gain 295,395 3,648
79,722,787 37,878,225
=========== ===========
29. OTHER EXPENSES
30/9/2019 30/9/2018
L.E. L.E.
Compensations and fines 123,694 307,417
Takaful contribution 3,912,386 -
Donations for others - 625,000
Capital loss - 13,262
Loss on foreign exchange 389,012 -
Bad debts 227,916 -
Sundry expenses 1,477,454 2,780,734
6,130,462 3,726,413
========== ==========
30. CONSOLIDATED STATEMENT OF INCOME
30/9/2019 30/9/2018
L.E. L.E.
Net profit from Madinet Nasr for Housing & Development S.A.E. 613,288,228 816,746,282
Group portion in net profits of subsidiaries companies 1,121,139 18,700,589
Exclude the effect of impairment in value of investments 10,527,907 -
Exclude the effect of reverse of impairment in value of investments - (19,518,646)
Exclude the effect of impairment in value of investments in subsidiaries (1,920,006) -
Exclude the effect of impairment of related parties 2,545,554 -
Exclude the effect of impairment in value of suppliers - credit balances - 24,375,000
625,562,822 840,303,225
============ =============
31. CONTINGENT LIABILITIES
Letters of guarantee
National Bank of Egypt, Banque Misr, United Bank and others,
have issued letters of guarantee amounting to L.E. 281,2 million at
30 September 2019 (2018: L.E. 244.2 million), in favor of third
parties, which are partially secured by the company's time deposits
amounting to L.E. 92,354,726 ( Note 11) (2018: L.E. 88,682,048) and
cash margin on letters of guarantee by L.E. 10,290,918 (2018: L.E.
10,290,918).
32. DEFERRED TAX
Madinet Nasr for Housing and Development (Parent company)
30/9/2019 31/12/2018
-------------------------- --------------------------
Assets (Liabilities) Assets (Liabilities)
L.E. L.E. L.E. L.E.
Fixed assets - (2,147,730) - (2,833,839)
Provisions 4,712,404 - 4,712,404 -
---------- -------------- ---------- --------------
Total deferred tax (liabilities)/ assets 4,712,404 (2,147,730) 4,712,404 (2,833,839)
---------- --------------
Net deferred tax assets 2,564,674 - 1,878,565 -
========== ============== ========== ==============
Deferred tax charged to the statement of income 686,109 - 212,968 -
========== ============== ========== ==============
30/9/2019 31/12/2018
L.E. L.E.
Unrecorded deferred tax assets (provisions) 38,929,935 35,988,407
=========== ===========
Al Nasr Co. for Civil Works - (Subsidiary Company)
30/9/2019 31/12/2018
-------------------------- ----------------------------
Assets (Liabilities) Assets (Liabilities)
L.E. L.E. L.E. L.E.
Fixed assets - (55,557) - (55,557)
Provisions 6,305,972 - 6,305,972 -
---------- -------------- ------------ --------------
Total deferred tax (liabilities)/ assets 6,305,972 (55,557) 6,305,972 (55,557)
Net deferred tax assets 6,250,415 - 6,250,415 -
========== ============== ============ ==============
Deferred tax charged to the statement of income - - (1,560,438) -
========== ============== ============ ==============
32. DEFERRED TAX - Continued
Al Nasr for Utilities and Installations Co. - (Subsidiary
Company)
30/9/2019 31/12/2018
-------------------------- --------------------------
Assets (Liabilities) Assets (Liabilities)
L.E. L.E. L.E. L.E.
Fixed assets - - - -
Unused taxable losses - - - -
---------- -------------- ---------- --------------
Total deferred tax (liabilities)/ assets - - - -
Net deferred tax assets - - - -
========== ============== ========== ==============
Deferred tax charged to the statement of income - - - (2,483,566 )
========== ============== ========== ==============
The effect on consolidated financial statements
Total deferred tax asset (financial position) 8,815,089 - 8,128,980 -
========== ============== ========== ==============
Total charged to the statement of income 686,109 - - (3,831,036)
========== ============== ========== ==============
33. TAX STATUS
Madinet Nasr for Housing and Development S.A.E. (Parent
company)
The company submits tax returns to the Tax Authority on due
dates and pays taxes according to these returns.
Al Nasr Co. for Civil Works - S.A.E. (Subsidiary company)
Tax returns submitted on due dates, the tax has been settled and
paid.
Al Nasr Co. for Utilities and Installations - S.A.E. (Subsidiary
company)
Tax returns were submitted on due dates, the company has
objected on tax claims received from the Tax Authority.
34. EARNINGS PER SHARE
30/9/2019 30/9/2018
L.E. L.E.
Net profit for the period after tax 625,562,047 840,303,225
Less: Estimated employees and Board of Directors share
in profit (80,000,000) (76,000,000)
Shareholders' share in net profit for the period 545,562,047 764,303,225
============== ==============
Weighted average numbers of shares outstanding
during the year 1,440,000,000 1,440,000,000
============== ==============
Earnings per share 0.37 0.53
============== ==============
35. FINANCIAL INSTRUMENTS AND RELATED RISKS
On-balance sheet financial instruments comprise cash and bank
balances, financial investments, debtors, creditors, and amounts
due from/to related parties. Notes to the financial statements
include the accounting policies adopted in the recognition and
measurement of financial instruments.
The significant risks associated with the financial instruments
and the procedures followed by the company to mitigate these risks
are as follows:
-- Credit risk
Credit risk is the risk that debtors fail to settle the amounts
due from them. The company seeks to reduce this risk to the minimum
by agreeing with the customers to transfer property after settling
all of their debts, also the company charges customers for delay
penalties calculated on settlement.
-- Liquidity risk
Liquidity risk represents all factors which affect the company's
ability to pay part or all of its obligations. According to the
company's policy sufficient liquidity is maintained which reduce
the risk to the minimum.
The following are due dates of the financial liabilities:
Less than 1 - 2 More than Book value
one year years 2 years
L.E. L.E. L.E. L.E.
30/9/2019
Term loans 62,816,379 121,106,240 382,501,998 566,424,617
Creditors and other credit balances 425,112,128 - - 425,112,128
Short term loans 233,332,984 - - 233,332,984
Trade payables and tax 627,582,675 - - 627,582,675
Long term notes payable - 20,594,405 2,695,105 23,289,510
1,348,844,166 141,700,645 385,197,103 1,875,741,914
============== ============ ============ ==============
31/12/2018
Term loans 137,768,093 28,813,357 209,966,744 376,548,194
Creditors and other credit balances 250,821,122 - - 250,821,122
Short term loans 111,666,664 - - 111,666,664
Trade payables and tax 663,661,567 - - 663,661,567
Long term notes payable - 39,255,924 - 39,255,924
1,163,917,446 68,069,281 209,966,744 1,441,953,471
============== ============ ============ ==============
35. FINANCIAL INSTRUMENTS AND RELATED RISKS - Continued
-- Interest rate risk
Interest rate risk represents the risk of changes in the rate of
interest. Time deposits, loans and bank overdrafts are subject to
this risk. The company uses most of its deposits in settling its
loans and overdraft balances whenever a gap between debit and
credit interest rates takes place in order to reduce this risk to
the minimum as possible.
The following are the financial assets and liabilities according
to interest rate type:
30/9/2019 31/12/2018
L.E. L.E.
Financial assets instruments with fixed interest rate
Financial assets (trade and notes receivable) 11,128,785,790 11,016,179,755
=============== ===============
Financial liabilities instruments with floating interest rate
Financial liabilities (Long and short term loans and credit banks) 1,011,333,926 554,510,540
=============== ===============
-- Foreign currency risk
Foreign currency risk represents the changes in the currency
rates which affect the receipts and disbursements and the
translation of assets and liabilities in foreign currencies. The
company policy is not to take a loan in foreign currencies nor keep
significant balances in currencies other than Egyptian pound.
36. CONTRACTUAL COMMITMENTS
The value of contracts with contractors for the implementation
of lands, unfinished and finished properties amounted to L.E. 4,708
million, the executed works till 30 September 2019 amounted to L.E.
1,449 million. Contractors' dues have been paid in accordance with
the contracts.
37. FAIR VALUE
The fair values of financial assets and liabilities are not
materially different from their carrying value at the financial
position date, except for investments available for sale.
38. COMPARATIVE FIGURES
Certain prior period figures have been reclassified to conform
to the financial statement presentation for the current period.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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