Financial Statements & Independent Auditor's Report |
| Tabuk Cement Company has announced its final financial statements for the year 1996. The following is a detailed presentation of these statements along with the Independent Auditor's report. (Negative values are in red): |
Balance Sheet, December 31, 1996: |
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| Year 1996 | Year 1995 | |
| Assets | ||
| Current Assets | ||
| Bank Balances | 813.760 | 421.929 |
| Payments and other assets | 1.700.402 | 2.591.378 |
| Accrued Revenue | 15.533.517 | 24.662.143 |
| Total Current Assets | 18.047.679 | 26.765.450 |
| Investments | 438.211.295 | 662.533.906 |
| Advances to Contractors for Projects Under Construction | 61.772.649 | 115.479.547 |
| Projects Under Construction | 595.183.295 | 41.034.117 |
| Property & Equipment, net | 2.655.122 | 2.635.513 |
| Deferred Expenses | 24.800.000 | 24.170.000 |
| Total Assets | 1.140.670.040 | 833.825.533 |
| Liabilities and Shareholders' Equity | ||
| Current Liabilities | ||
| Accounts Payable | 59.296.648 | 3.892.668 |
| Accrued Expenses and Other Liabilities | 1.657.689 | 4.094.308 |
| Provision for Zakat and Income Tax | 1.117.726 | 1.518.248 |
| Total Current Liabilities | 62.072.063 | 9.505.244 |
| Contract Retentions | 101.769.218 | 3.082.619 |
| Saudi Industrial Development Fund Loan | 200.000.000 | 72.109.000 |
| End of Service Benefits | 415.099 | 219.035 |
| Total Liabilities | 364.256.380 | 81.833.259 |
| Shareholders' Equity | ||
| Capital | 700.000.000 | 700.000.000 |
| Statutory Reserve | 7.641.366 | 5.169.527 |
| Retained Earnings | 68.772.294 | 46.525.747 |
| Total Shareholders' Equity | 776.413.660 | 751.695.274 |
| Total Liabilities and Shareholders' Equity | 1.140.670.040 | 833.528.533 |
Income Statement for the year 1996/ SR: |
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| Year 1996 | Year 1995 | |
| Revenue | 34.280.140 | 73.093.391 |
| General, Administrative, and Depreciation Expenses | 8.487.415 | 18.953.869 |
| Directors' Remuneration | 132.000 | 962.000 |
| Net income for the year/period before Zakaet and Taxes | 25.660.725 | 53.213.522 |
| Zakat and Taxes | 942.339 | 1.518.248 |
| Net Income for the Year/Period after Zakat and Taxes | 27.718.386 | 51.695.274 |
Changes in Shareholders' Equity |
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| Year 1996 | Year 1995 | |
| Capital | 700.000.000 | 700.000.000 |
| Statutory Reserve | ||
| Beginning of the Year/Period | 5.169.527 | ____ |
| Transfer from Retained Earnings | 2.471.839 | 5.169.527 |
| End of Year/Period | 7.641.366 | 5.169.527 |
| Retained Earnings | ||
| Begining of the Year/Period | 46.525.747 | ___ |
| Net Income for the Year/Period | 24.718.386 | 51.695.274 |
| Transfer to Statutory Reserve | 2.471.839 | 5.169.527 |
| End of the Year/Period | 68.772.294 | 46.525.747 |
| Total Shareholders' Equity | 776.413.660 | 751.695.274 |
Statement of Cash Flows |
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| Year 1996 | Year 1995 | |
| Cash Flows from Operting Activities | ||
| Net Income for the Year/Period | 24.718.386 | 51.695.274 |
| Adjustments to reconcile net income to net cash from operating activities | ||
| Depreciation | 626.795 | 1.042.110 |
| Changes in Assets and Liabilities | ||
| Decrease (Increase) in prepayments and other assets | 890.976 | 2.591.378 |
| Decrease (Increase) in accrued revenue | 9.128.626 | 24.662.143 |
| Increase in accounts payable | 55.403.980 | 3.892.668 |
| Increase in accrued expenses and other liabilities | 646.000 | 1.011.689 |
| Increase in end of service benefit | 196.064 | 219.035 |
| Decrease (Increase) in Zakat and incme tax provision | 400.522 | 1.518.248 |
| Total Adjustments | 66.491.919 | 19.569.771 |
| Net Cash from Operating Activities | 91.210.305 | 32.128.503 |
| Cash Flows from Investing Activities | ||
| Increase in deferred expenses | 630.000 | 170.000 |
| Increase in contract retentions | 98.686.599 | 3.082.619 |
| Decrease (Increase) in advances to contractors for projects under construction | 53.706.898 | 115.479.547 |
| Increase in projects under construction | 554.149.178 | 41.034.117 |
| Purchases of property and equipment | 646.404 | 3.677.623 |
| Decrease (Increase) in investments | 218.709.474 | 622.533.906 |
| Net cash used in investing activities | 218.709.474 | 782.895.193 |
| Cash Flows from Financing Activities | ||
| Capital | ___ | 700.000.000 |
| SIDF loan proceeds | 127.891.000 | 48.109.000 |
| Net cash from financing activities | 127.891.000 | 748.109.000 |
| Net increase in bank balances | 391.831 | 421.929 |
| Beginning bank balances | 421.929 | ___ |
| Ending bank balances | 813.760 | 421.929 |
Independent Auditor's Report |
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To: Shareholders Tabuk Cement Company |
|
We have audited the accompanying balance sheets of TABUK CEMENT COMPANY (a Saudi joint stock company) as of December 31, 1996 and the related statement of income. Changes in Shareholders' Equity and Cash Flows for the year ended December 31, 1996 and the period from inceptin on November 1, 1992 up to December 31, 1995, and the notes from 1 to 14 which are an integral part of these financial statements which were prepared by the management in accordance with article (123) of the companies by-laws and presented to us together with all the information and explanations which we requested. We express our opinion on these financial statements based on our audit and the information and explanations we obtained which we considered necessary for the purposes of our audits.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we pland and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tabuk Cement Company as of December 31, 1996 and 1995 and the results of its operations and its cash flows for the year ended December 31, 1996, and the period from inception on November 1, 1992 to December 31, 1995 based on the presentation and disclosure of the information included in the financial statements and in conformity with generally accepted accounting principles as summarized in Note 2. We are also of the opinion that the preparation and presentation of the above financial statements comply with the commercial code and the company's by-laws and are in agreement with the accounting records which are maintained in the Kingdom of Saudi Arabia and are computerized in accordance with the related commercial books regulations. Arther Andersum AlMohandis & Co. Arfan K. Ayass - License No. 98 Riyadh - Kingdom of Saudi Arabia - 18 Feb, 1997. |
