Al-Deera Holding Company Financial Report

Page 1

Title Page

  • Grant Thornton Al-Qatami, Al-Aiban & Partners

  • Consolidated Financial Statements and Independent Auditor's Report

  • Al-Deera Holding Company - KPSC and subsidiaries

  • Kuwait, 31 December 2023


Page 2

Table of Contents

  • Independent Auditor's Report (Pages 1-4)

  • Consolidated Statement of Profit or Loss (Page 5)

  • Consolidated Statement of Profit or Loss and Other Comprehensive Income (Page 6)

  • Consolidated Statement of Financial Position (Page 7)

  • Consolidated Statement of Changes in Equity (Pages 8-9)

  • Consolidated Statement of Cash Flows (Page 10)

  • Notes to the Consolidated Financial Statements (Pages 11-46)


Page 3

Auditor's Header Information

  • Grant Thornton Al-Qatami, Al-Aiban & Partners

  • Address: Souq Al-Kabeer, Building Block A, 9th Floor, P.O. Box 2986, Safat 13030, State of Kuwait

  • Contact: T +965-2244-3900/9, F +965-2243-8451

  • Website: www.grantthornton.com.kw

Independent Auditor's Report

  • To: Shareholders of Al-Deera Holding Company - KPSC

Opinion

  • Audited Financial Statements presented fairly in accordance with IFRSs as of 31 December 2023.


Page 4

Key Audit Matters

Investment in Associates

  • Significant part of total assets, accounted under the equity method.

  • Management assessed impairment indicators, which is a key audit matter.


Page 5

Consolidated Statement of Profit or Loss

Year Ended 31 December:

  • Revenue Breakdown:

    • Change in fair value of investments: KD 1,221,266

    • Gain on sale of investments: KD 117,447

    • Share of results of an associate: KD 1,264,065

  • Total Revenue: KD 2,784,764

  • Profit for the Year: KD 1,973,877 (attributable to shareholders: KD 1,976,541)


Page 6

Consolidated Statement of Profi Loss and Other Comprehensive Income

Year Ended 31 December:

  • Profit for the year: KD 1,973,877

  • Total other comprehensive income: KD 6,443,047

  • Total comprehensive income for the year: KD 8,416,924


Page 7

Consolidated Statement of Financial Position

As of 31 December:

  • Total Assets: KD 36,404,455

    • Non-current Assets: KD 30,834,332

    • Current Assets: KD 5,570,123

  • Total Liabilities: KD 15,027,395

  • Total Equity: KD 21,377,060


Page 8

Consolidated Statement of Changes in Equity

For Year Ended December 31, 2023:

  • Balance at beginning: KD 12,745,162

  • Profit for the year: KD 1,976,541

  • Total comprehensive income: KD 8,394,394

  • Balance at end: KD 21,057,974


Page 9

Consolidated Statement of Changes in Equity (continued)

For Year Ended December 31, 2022:

  • Profit for the year: KD 657,317

  • Total comprehensive loss: KD (1,534,205)


Page 10

Consolidated Statement of Cash Flows

Year Ended 31 December:

  • Net cash used in operating activities: KD (4,532,363)

  • Net cash from investing activities: KD 773,341

  • Net cash from financing activities: KD 4,100,000


Page 11

Notes to the Consolidated Financial Statements

1. Incorporation and Activities

  • Established on 18 February 1998, changed status to KPSC on 8 September 2005.

  • Major activities include managing subsidiaries and investing.


Page 12

Statement of Compliance

  • Consolidated Financial Statements prepared in accordance with IFRS.

Changes in Accounting Policies

  1. New Standards: IAS 1 and IAS 8 amendments adopted.


Page 13

Changes in Accounting Policies (continued)

New Standards Issued But Not Yet Effective

  • Standards like IFRS 10 and IAS 28 are pending future adoption.


Page 14

Material Accounting Policies

4.1 Basis of Preparation

  • Presented in Kuwaiti Dinars under historical cost convention except for fair value investments.


Page 15

Material Accounting Policies (continued)

4.3 Business Combinations

  • Acquisition recorded using acquisition method, recognizing identifiable assets and liabilities.


Page 16

Material Accounting Policies (continued)

4.4 Investment in Associates

  • Investments in associates accounted using equity method. Recognize losses when they exceed the carrying amount.


Page 17

Material Accounting Policies (continued)

4.5 Segment Reporting

  • Group operates primarily in investments sector.


Page 18

Material Accounting Policies (continued)

4.10 Taxation

  • NLST, KFAS, Zakat contributions based on net profit calculations.


Page 19

Material Accounting Policies (continued)

4.12 Leased Assets

  • Recognized as right-of-use asset and lease liabilities based on defined criteria.


Page 20

Material Accounting Policies (continued)

4.23 Related Party Transactions

  • Governed by management approval; includes transactions for loans and advisory fees.


Page 21

Segmental Information

Group operates in Investments

  • Total Revenue: KD 2,784,764

  • Profit: KD 1,973,877


Page 22

Risk Management Objectives and Policies

Financial Risks:

  • Market Risk, Credit Risk, Liquidity Risk identified.

23.1 Market Risk

  • Foreign Currency and Interest Rate risks monitored closely.


Page 23

Risk Management Objectives and Policies (continued)

23.2 Credit Risk

  • Ongoing monitoring of defaults and emphasis on dealing with creditworthy counterparties.


Page 24

Fair Value Measurement

Measurement of Financial Instruments

  • Fair values derived from market data when available, utilizing valuation techniques otherwise.


Page 25

Capital Management Objectives

  • Monitor net debt to equity ratio to maintain operational solvency and returns.


Page 26

Comparative Figures

  • Certain figures reclassified for reporting consistency.


Page 27

About Grant Thornton

  • Global network with expertise in assurance, tax, and consultancy services.

  • Grant Thornton - Al-Qatami, Al-Aiban & Partners established in 1973 in Kuwait.