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

AL MADAR FINANCE AND INVESTMENT COMPANY K.S.C.P. AND SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED FINANCIAL

INFORMATION (UNAUDITED)

30 SEPTEMBER 2021

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 FINANCE AND INVESTMENT COMPANY K.S.C.P.

Report on Review of Interim Condensed Consolidated Financial Information

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Al Madar Finance and Investment Company K.S.C.P. (the "Parent Company") and subsidiaries (collectively, the "Group") as at 30 September 2021, and the related interim condensed consolidated statement of profit or loss and interim condensed consolidated statement of comprehensive income for the three months and nine months periods then ended, and the related interim condensed consolidated statement of changes in equity and interim condensed consolidated statement of cash flows for the nine months 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 basis of preparation set out in Note 2. 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 basis of preparation as set out in Note 2.

Other Matter

The consolidated financial statements of the Group for the year ended 31 December 2020 and the interim condensed consolidated interim financial information for the nine months period ended 30 September 2020, were audited and reviewed, respectively by another auditor who expressed an unmodified opinion and conclusion on those statements on 22 February 2021 and 8 November 2020, respectively.

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION TO THE BOARD OF DIRECTORS OF 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 months period ended 30 September 2021 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 material violations of the provisions of Law No. 32 of 1968, as amended, concerning currency, the Central Bank of Kuwait and the organisation of banking business, and its related regulations, or of the provisions of Law No. 7 of 2010 concerning the Capital Markets Authority and its related regulations during the nine months period ended 30 September 2021 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 2021

Kuwait

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Al Madar Finance and Investment Company K.S.C.P. and Subsidiaries

INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS (UNAUDITED)

For the period ended 30 September 2021

		Three months ended		Nine months ended
	Notes	30 September		30 September
	2021	2020		2021	2020
INCOME		KD	KD		KD	KD
	38,525		149,014
Real estate income	3	82,999	247,671
Net (loss) gain from investment securities	4	(17,232)	94,089	(872)	233,935
Share of results of an associate	6	-	22,619	-	42,565
Foreign currency translation loss recycled to
profit or loss upon derecognition of an		-		(199,223)	-
associate	6	-
Advisory and management fees		246	(2,882)	1,215	913
Reversal of ( allowance for) expected		18,543		38,593
credit losses		-	(72,750)
Other income		-	7,871	-	18,865
		──────	──────		──────	──────
		40,082	204,696	(11,273)	471,199
EXPENSES		──────	──────		──────	──────
	(149,465)		(516,615)
Administrative expenses		(199,151)	(663,555)
		──────	──────		──────	──────
(LOSS) PROFIT FOR THE PERIOD		(109,383)	5,545	(527,888)	(192,356)
Attributable to:		══════	══════		══════	══════
	(107,700)	(4,886)	(528,398)	(215,385)
Equity holders of the Parent Company
Non-controlling interests		(1,683)	10,431	510	23,029
		──────	──────		──────	──────
(LOSS) PROFIT FOR THE PERIOD		(109,383)	5,545	(527,888)	(192,356)
BASIC AND DILUTED LOSS PER SHARE		══════	══════		══════	══════
ATTRIBUTABLE TO EQUITY HOLDERS OF	5	(0.52) Fils	(0.02) Fils		(2.55) Fils	(1.04) Fils
THE PARENT COMPANY
		══════	══════		══════	══════

The attached notes 1 to 15 form part of this interim condensed consolidated financial information.

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Al Madar Finance and Investment Company K.S.C.P. and Subsidiaries

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

For the period ended 30 September 2021

		Three months ended		Nine months ended
	Note	30 September		30 September
	2021	2020		2021	2020
		KD	KD		KD	KD
(LOSS) PROFIT FOR THE PERIOD		(109,383)	5,545	(527,888)	(192,356)
		──────	──────		──────	──────
Other comprehensive income (loss):
Other comprehensive income (loss) that
may be reclassified to profit or loss in
subsequent periods:
Exchange differences on translation of		-		(1,200)
foreign operations		7,458	(7,802)
Foreign currency translation loss recycled to
profit or loss upon derecognition of an		-		199,223
associate	6	-	-
		──────	──────		──────	──────
		-	7,458	198,023	(7,802)
Other comprehensive loss that will not be		──────	──────		──────	──────
reclassified to profit or loss in subsequent
periods:
Net loss on equity instruments at fair		-		-
value through other comprehensive income		(22)	(261)
		──────	──────		──────	──────
		-	(22)	-	(261)
Other comprehensive income (loss) for the		──────	──────		──────	──────
period		-	7,436	198,023	(8,063)
TOTAL COMPREHENSIVE (LOSS) INCOME		──────	──────		──────	──────
	(109,383)	12,981	(329,865)	(200,419)
FOR THE PERIOD
Attributable to:		══════	══════		══════	══════
	(107,700)		(330,375)
Equity holders of the Parent Company		2,550	(223,448)
Non-controlling interests		(1,683)	10,431	510	23,029
		──────	──────		──────	──────
		(109,383)	12,981	(329,865)	(200,419)
		══════	══════		══════	══════

The attached notes 1 to 15 form part of this interim condensed consolidated financial information.

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