Trafco B S C : 2023 Financial Statements - 2nd Quarter (English)

Trafco Group B.S.C.

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

30 JUNE 2023 (REVIEWED)

Ernst & Young - Middle East	Tel:	[phone]
P O Box 140	Fax:	[phone]
10th Floor, East Tower	[e-mail]
Bahrain World Trade Centre	C.R. No. 29977-1
Manama
Kingdom of Bahrain

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 condensed consolidated financial statements of Trafco Group B.S.C. ("the Company") and its subsidiaries (together "the Group") as at 30 June 2023, comprising of the interim consolidated statement of financial position as at 30 June 2023 and the related interim consolidated statement of profit or loss and other comprehensive income for the three and six-month periods then ended and the related interim consolidated statements of cash flows and changes in equity for the six-month period then ended and explanatory notes. The Board of Directors of the Company 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

10 August 2023

Manama, Kingdom of Bahrain

A member firm of Ernst & Young Global Limited

Trafco Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 30 June 2023 (Reviewed)

	Six-month period ended
	30 June
	2023	2022
	BD		BD
OPERATING ACTIVITIES
Profit of the Group for the period	1,765,707	1,467,938
Adjustments for:
Investment income	(1,075,709)	(653,142)
Depreciation on property, plant and equipment	489,522	513,536
Depreciation on right-of-use assets	202,865	205,710
Finance costs	235,357	84,973
Other income	-	(231,672)
Finance costs on lease liabilities	97,006	94,171
Provision for employees' end of service benefits	104,282	89,067
Share of results of an associate	-	138,319
Provision for slow moving and obsolete of inventories	30,152	53,357
Allowance for expected credit losses	64,055	6,304
Gain on disposals of property, plant and equipment	(12,288)	(5,293)
Operating profit before changes in working capital	1,900,949	1,763,268
Working capital changes:
Inventories	(242,431)	(1,285,843)
Trade and other receivables	(1,821,458)	(358,171)
Trade and other payables	(1,053,463)	471,752
Contract and refund liabilities	62,735	107,173
Net cash (used in) generated from operations	(1,153,668)	698,179
Employees' end of service benefits paid	(91,706)	(111,795)
Net cash flows (used in) generated from operating activities	(1,245,374)	586,384
INVESTING ACTIVITIES
Purchase of property, plant and equipment	(575,928)	(298,783)
Proceeds from disposals of property, plant and equipment	14,584	16,493
Proceeds from disposals of investment at fair value
through other comprehensive income	344,581	-
Purchase of investment at fair value through other comprehensive income	(22,211)	(159,388)
Dividends and interest received	1,075,709	653,142
Acquisition of associate	-	(200,951)
Net cash flows generated from investing activities	836,735	10,513
FINANCING ACTIVITIES
Dividends paid	(1,112,844)	(1,038,654)
Term loans availed	1,300,000	-
Repayment of term loan	(316,531)	(99,833)
Import loans availed	6,465,801	5,404,315
Repayment of import loan	(6,565,713)	(4,766,791)
Finance costs paid on loans	(224,318)	(69,010)
Payment of principal portion of lease liabilities	(230,567)	(216,913)
Finance costs paid on lease liabilities	(97,006)	(94,171)
Net cash flows used in financing activities	(781,178)	(881,057)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,189,817)	(284,160)
Foreign currency translation adjustments - net	(1,720)	(55,234)
Cash and cash equivalents at 1 January	3,142,708	3,398,248
CASH AND CASH EQUIVALENTS AT 30 JUNE (A)	1,951,171	3,058,854

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