Financial Statements & Independent Auditor's Report |
| Tabuk Cement Company has announced its final financial statements for the year 1998. The following is a detailed presentation of these statements along with the Independent Auditor's report. (Negative values are in red): |
Balance Sheet as of Dec 31, 1998 - SR: |
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| Year 1998 | Year 1997 | |
| Assets | ||
| Current Assets | ||
| Bank Balances | 735.810 | 369.667 |
| Prepayments and other assets | 6.417.394 | 5.764.415 |
| Inventories | 4.827.024 | ___ |
| Accrued Revenue | 382.236 | 141.535 |
| Total Current Assets | 12.362.464 | 6.275.617 |
| Investments | 91.275.622 | 295.519.419 |
| Advances to Contractors for Project Under Construction | 1.395.818 | 15.584.228 |
| Projects Under Construction | 969.143.879 | 969.143.879 |
| Property & Equipment, net | 4.480.834 | 3.623.205 |
| Pre-Operating Expenses, net | 17.999.673 | 5.709.548 |
| Deferred Expenses | 27.092.000 | 25.190.000 |
| Total Assets | 1.228.039.897 | 1.321.045.896 |
| Liabilities and Shareholders' Equity | ||
| Current Liabilities | ||
| Accounts Payable | 3.397.666 | 34.144.629 |
| Accrued Expenses and Other Liabilities | 4.485.066 | 2.382.111 |
| Contract Retentions | 27.721.439 | 135.497.780 |
| Provision for Zakat and Income Tax | 526.756 | 497.350 |
| Total Current Liabilities | 36.130.927 | 172.521.870 |
| Saudi Industrial Development Fund Loan | 400.000.000 | 359.803.000 |
| End of Service Benefits | 1.289.041 | 716.072 |
| Total Liabilities | 437.419.968 | 533.040.942 |
| Shareholders' Equity | ||
| Capital | 700.000.000 | 700.000.000 |
| Statutory Reserve | 9.061.993 | 8.800.495 |
| Retained Earnings | 81.557.936 | 79.204.459 |
| Total Shareholders' Equity | 790.619.929 | 788.004.954 |
| Total Liabilities & Shareholders' Equity | 1.228.039.897 | 1.321.045.896 |
Statement of Income for the year ended Dec 31, 1998 - SR: |
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| Year 1998 | Year 1997 | |
| Revenue | 11.191.359 | 18.708.267 |
| General and Administrative Expenses | 7.906.378 | 6.053.831 |
| Directors' Remuneration | 207.000 | 138.000 |
| Net Income for the year before Zakat and Taxes | 3.077.981 | 12.516.436 |
| Zakat and Taxes | 463.006 | 925.142 |
| Net Income for the Year | 2.614.975 | 11.591.294 |
Changes in Shareholders' Equity Dec 31, 1998 - SR:: |
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| Year 1998 | Year 1997 | |
| Capital | 700.000.000 | 700.000.000 |
| Statutory Reserve | ||
| Beginning of the Year | 8.800.495 | 7641.366 |
| Transfer from Retained Earnings | 261.498 | 1.159.129 |
| End of Year Balance | 9.061.993 | 8.800.495 |
| Retained Earnings | ||
| Beginning of the Year Balance | 79.204.459 | 68.772.294 |
| Net Income for the Year | 2.614.975 | 11.591.294 |
| Transfers to the Statutory Reserve | 261.498 | 1.159.129 |
| End of the Year Balance | 81.557.936 | 79.204.459 |
| Total Shareholders' Equity | 790.619.929 | 788.004.954 |
Statement of Cash Flows Dec 31, 1998 - SR: |
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| Year 1998 | Year 1997 | |
| Cash Flows from Operating Activities | ||
| Net Income for the Year | 2.614.975 | 11.591.294 |
| Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities: | ||
| Depreciation | 886.425 | 776.558 |
| Changes in Assets and Liabilities | ||
| Increase in prepayments and other assets | 652.979 | 4.064.013 |
| Increase in Inventories | 4.827.024 | ___ |
| (Increase) Decrease in accrued Revenue | 240.701 | 15.391.982 |
| Increase in Pre-Operating Expenses, Net | 12.290.125 | 5.709.548 |
| Decrease in Accounts Payable | 30.746.963 | 25.152.019 |
| Increase in Accrued Expenses and Other Liabilities | 2.102.955 | 724.422 |
| Increase in End of Service Benefits | 572.969 | 300.973 |
| Increase (Decrease) in Zakat and Taxes Provision | 29.406 | 620.376 |
| Total Adjustments | 45.166.037 | 18.352.021 |
| Net Cashe Used in Operating Activities | 42.551.062 | 6.760.727 |
| Cash Flows from Investing Activities | ||
| Increase in Deferred Expenses | 1.902.000 | 390.000 |
| (Decrease) Increase in Contract Retentions | 107.776.341 | 33.728.564 |
| Decrease in Advances to Contractors for Projects Under Construction | 14.188.410 | 46.188.421 |
| Increase in Projects Under Construction | 104.289.607 | 373.960.584 |
| Purchases of Property & Equipment | 1.744.054 | 1.744.643 |
| Decrease in Investments | 204.243.797 | 142.691.876 |
| Net Cash Provided by (Used in) Investing Activities | 2.720.205 | 153.486.366 |
| Cash Flows from Financing Activities | ||
| Loan Proceeds from Saudi Industrial Development Fund | 40.197.000 | 159.803.000 |
| Net Cash from Financing Activities | 40.197.000 | 159.803.000 |
| Net Increase (Decrease) in Bank Balances | 366.143 | 444.093 |
| Beginning Bank Balances | 369.667 | 813.760 |
| Ending Bank Balances | 735.810 | 369.667 |
Independent Auditor's Report |
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To: Shareholders Tabuk Cement Company |
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We have audited the accompanying balance sheets of TABUK CEMENT COMPANY (a Saudi joint stock company) as of December 31, 1998 and the related statement of income. Changes in Shareholders' Equity and Cash Flows for the year ended December 31, 1998 and the notes from 1 to 15 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, 1998 and 1997 and the results of its operations and its cash flows for the year ended December 31, 1998 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 Mohammed Ibrahim Al-Toaimy - License No. 127 Riyadh - Kingdom of Saudi Arabia - 17 Feb, 1999. |
