Al Madar Finance and Investment K S C P : Financial Report

AL MADAR INVESTMENT COMPANY K.S.C.P.

AND ITS SUBSIDIARIES (FORMERLY AL MADAR FINANCE AND INVESTMENT COMPANY K.S.C.P)

INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION (UNAUDITED)

Ernst & Young	Tel: [phone]
Al Aiban, Al Osaimi & Partners	Fax: [phone]
P.O. Box 74	[e-mail]
18-20th Floor, Baitak Tower	ey.com/mena
Ahmed Al Jaber Street
Safat Square 13001, Kuwait

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF AL MADAR INVESTMENT COMPANY K.S.C.P. (FORMERLY AL MADAR FINANCE AND INVESTMENT COMPANY K.S.C.P)

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Al Madar Investment Company K.S.C.P (Formerly Al Madar Finance and Investment Company K.S.C.P.) (the "Parent Company") and its subsidiaries (collectively, the "Group") as at 30 September 2022, and the related interim condensed consolidated statement of profit or loss, interim condensed consolidated statement of comprehensive income for the three-month and nine-month periods ended and the related interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the nine-month period then ended. The management of the Parent Company is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard IAS 34 Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with IAS 34.

Emphasis of Matter

We draw attention to Note 7 in the interim condensed consolidated financial information which states that the Group is the ultimate beneficiary of certain investment properties with a carrying value of KD 4,084,551 (31 December 2021: KD 5,720,871 and 30 September 2021: KD 2,309,746) registered in the name of the Ultimate Parent Company on behalf of the Group. Our conclusion is not modified in respect of this matter.

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF AL MADAR INVESTMENT COMPANY K.S.C.P. (FORMERLY AL MADAR FINANCE AND INVESTMENT COMPANY K.S.C.P) (continued)

Report on Other Legal and Regulatory Matters

Furthermore, based on our review, the interim condensed consolidated financial information is in agreement with the books of account of the Parent Company. We further report that, to the best of our knowledge and belief, we have not become aware of any violations of the Companies Law No. 1 of 2016, as amended, and its executive regulations, as amended, nor of the Parent Company's Articles of Association and Memorandum of Incorporation, as amended, during the nine-month period ended 30 September 2022 that might have had a material effect on the business of the Parent Company or on its financial position.

We further report that, during the course of our review, to the best of our knowledge and belief, we have not become aware of any violations of the provisions of Law No. 7 of 2010, concerning the Capital Markets Authority and its related regulations during the nine-month period ended 30 September 2022 that might have had a material effect on the business of the Parent Company or on its financial position.

BADER A. AL-ABDULJADER

LICENCE NO. 207 A

EY

AL AIBAN, AL OSAIMI & PARTNERS

14 November 2022

Kuwait

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Al Madar Investment Company K.S.C.P. and its Subsidiaries (Formerly Al Madar Finance and Investment Company K.S.C.P.)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UNAUDITED)

For the period ended 30 September 2022

		Three months ended		Nine months ended
	Notes	30 September		30 September
	2022	2021		2022	2021
INCOME		KD	KD		KD	KD
	122,175		366,306
Net real estate income	3	38,525	149,014
Net gain (loss) from investment securities	4	16,298	(17,232)	49,092	(872)
Foreign currency translation loss recycled to profit		-	-	-
or loss upon derecognition of an associate		(199,223)
Advisory and management fees		-	246	-	1,215
(Allowance for) reversal of expected credit losses		(33,603)	18,543	(28,518)	38,593
Other income		1,351	-	3,653	-
		──────	──────		──────	──────
		106,221	40,082	390,533	(11,273)
EXPENSES		──────	──────		──────	──────
	(138,506)		(457,758)
Administrative expenses		(149,465)	(516,615)
Finance costs		(11,086)	-	(30,477)	-
		──────	──────		──────	──────
		(149,592)	(149,465)	(488,235)	(516,615)
		──────	──────		──────	──────
LOSS FOR THE PERIOD		(43,371)	(109,383)	(97,702)	(527,888)
Attributable to:		══════	══════		══════	══════
	(51,633)		(119,139)
Equity holders of the Parent Company		(107,700)	(528,398)
Non-controlling interests		8,262	(1,683)	21,437	510
		──────	──────		──────	──────
LOSS FOR THE PERIOD		(43,371)	(109,383)	(97,702)	(527,888)
		══════	══════		══════	══════
BASIC AND DILUTED LOSS PER SHARE
ATTRIBUTABLE TO EQUITY HOLDERS OF
THE PARENT COMPANY	5	(0.25) Fils	(0.52) Fils		(0.58) Fils	(2.55) Fils
		══════	══════		══════	══════

The attached notes 1 to 13 form part of this interim condensed consolidated financial information.

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Al Madar Investment Company K.S.C.P. and its Subsidiaries (Formerly Al Madar Finance and Investment Company K.S.C.P.)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

For the period ended 30 September 2022

	Three months ended		Nine months ended
	30 September		30 September
	2022	2021		2022	2021
	KD	KD		KD	KD
LOSS FOR THE PERIOD	(43,371)	(109,383)	(97,702)	(527,888)
	──────	──────		──────	──────
Other comprehensive income
Other comprehensive income that may be reclassified to
profit or loss in subsequent periods:	2,982	-	6,038
Exchange differences on translation of foreign operations	(1,200)
Foreign currency translation loss recycled to profit or loss	-	-	-
upon derecognition of an associate	199,223
	──────	──────		──────	──────
Other comprehensive income for the period	2,982	-	6,038	198,023
	──────	──────		──────	──────
TOTAL COMPREHENSIVE LOSS FOR THE PERIOD	(40,389)	(109,383)	(91,664)	(329,865)
Attributable to:	══════	══════		══════	══════
(48,651)		(114,610)
Equity holders of the Parent Company	(107,700)	(330,375)
Non-controlling interests	8,262	(1,683)	22,946	510
	──────	──────		──────	──────
	(40,389)	(109,383)	(91,664)	(329,865)
	══════	══════		══════	══════

The attached notes 1 to 13 form part of this interim condensed consolidated financial information.

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