2021 Financial Statements – 3rd Quarter (English)

Trafco Group B.S.C.

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

30 SEPTEMBER 2021 (REVIEWED)

REPORT ON THE REVIEW OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF TRAFCO GROUP B.S.C.

Introduction

We have reviewed the accompanying interim consolidated statement of financial position of Trafco Group B.S.C. ("the Company") and its subsidiaries (together "the Group") as of 30 September 2021, and the related interim consolidated statement of profit or loss account and other comprehensive income for the three-month and nine-month periods then ended and the related interim consolidated statements of cash flows and changes in equity for the nine-month period then ended and explanatory notes. The Company's Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Accounting Standard 34 ('IAS 34') "Interim Financial Reporting". Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with the 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 statements are not prepared, in all material respects, in accordance with IAS 34.

Auditor's Registration No. 244

8 November 2021

Manama, Kingdom of Bahrain

Trafco Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 30 September 2021 (Reviewed)

	Nine-month period ended
	30 September
	2021	2020
	BD		BD
OPERATING ACTIVITIES
Profit of the Group for the period	1,692,173	2,109,631
Adjustments for:
Investment income	(630,728)	(630,159)
Depreciation on property, plant and equipment	803,892	765,134
Depreciation on right-of-use assets	304,235	331,374
Finance costs	108,340	112,137
Finance costs on lease liabilities	89,501	92,265
Provision for employees' end of service benefits	157,643	194,565
Share of results of an associate	83,734	62,090
Provision for slow moving and obsolete of inventories	39,316	58,162
Allowance for expected credit losses	38,138	114,779
Gain on termination of lease agreements	(2,301)	-
Amortisation of Government grant	(3,029)	-
Gain on disposals of property, plant and equipment	(17,630)	(4,074)
Operating profit before changes in working capital	2,663,284	3,205,904
Working capital changes:
Inventories	1,054,786	485,312
Trade and other receivables	(350,605)	(113,102)
Trade and other payables	200,280	(887,542)
Contract and refund liabilities	119,395	(26,978)
Net cash generated from operations	3,687,140	2,663,594
Directors' remuneration paid	(92,250)	(122,577)
Finance cost on bank overdrafts	(70,486)	(94,180)
Employees' end of service benefits paid	(230,356)	(81,885)
Net cash flows from operating activities	3,294,048	2,364,952
INVESTING ACTIVITIES
Purchase of property, plant and equipment	(638,649)	(513,420)
Proceeds from disposals of property, plant and equipment	25,021	5,269
Purchase of non-trading investments	(1,029,700)	(343,733)
Proceeds from disposals of non-trading investments	697,453	23,196
Dividends and interest received	631,126	628,919
Short-term deposits with original maturities of more than three months	(3,165,085)	(1,740,950)
Net cash flows used in investing activities	(3,479,834)	(1,940,719)
FINANCING ACTIVITIES
Dividends paid	(1,117,307)	(1,423,304)
Net movements in import loans	(645,661)	673,463
Net movements in term loans	(147,310)	128,483
Finance costs paid on loans	(34,792)
Finance costs paid on lease liabilities	(89,501)	(92,265)
Payment of principal portion of lease liabilities	(281,739)	(295,648)
Net movement in retentions payable	-	(37,198)
Net cash flows used in financing activities	(2,316,310)	(1,046,469)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(2,502,096)	(622,236)
Foreign currency translation adjustments - net	(52,538)	(32,191)
Cash and cash equivalents at 1 January	2,972,240	1,317,279
CASH AND CASH EQUIVALENTS AT 30 SEPTEMBER (A)	417,606	662,852

Theattached notes 1 to 13 form part of these interim condensed consolidated financial statements. 4