In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as at 31 December 2022, and its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRS). ) endorsed in the Kingdom of Saudi Arabia and other standards and rulings issued by the Saudi Organization of Chartered and Professional Accountants (SOCPA). We are independent of the company in accordance with the ethical requirements in the Kingdom of Saudi Arabia relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Key audit matters are those matters that, in our professional judgment, were most significant in our audit of the current year's financial statements.
These matters were addressed in connection with our audit of the financial statements as a whole and in our conclusion thereon, and we do not issue a separate conclusion on these matters. Checked the mathematical accuracy of the analyzes and ages of parts inventory records and their consistency with the company's financial records. Evaluated the appropriateness of the key assumptions used by management to estimate the provision for impairment of spare parts inventory.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control. Based on the matters communicated with those charged with governance, we determine the matters that were of greatest importance in the audit of the financial statements for the current year, and which are therefore the most important audit matters.
CORPORATE INFORMATION
BASIS OF PREPERATION a) Statement of compliance
Functional and presentation currency
USE OF JUDGEMENTS AND ESTIMATES
USE OF JUDGMENTS AND ESTIMATES (continued) Impairment of inventory
USE OF JUDGMENTS AND ESTIMATES (continued) Useful lives of property, plant and equipment
SIGNIFICANT ACCOUNTING POLICIES
Identify the contract(s) with a customer: A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations and sets out the criteria for every
Determine the transaction price: The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a
Recognize revenue when (or as) the entity satisfies a performance obligation
SIGNIFICANT ACCOUNTING POLICIES (continued) Sales of goods
For contracts with customers whose sole obligation will be to sell cement, revenue should be recognized when control of the asset is transferred to the customer at a specified point in time, which is usually the date of delivery. The company recognizes revenue at the moment when the buyer obtains control of the promised asset and the company fulfills its performance obligations. The company is required by law to pay end-of-service benefits (defined benefit plan) in accordance with Saudi labor law.
Termination of service benefit is equal to half of the last month's pay of each of the first five years of service, including fractions of the year, in addition to the full last month's pay for each remaining year. / subsequent service, including fractions of the year. In accordance with the requirements of IAS 19 "Employee benefits", the end of service compensation is determined by actuarial valuation using the actuarial cost method of the project loan per unit at the end of each financial year. The gain or loss arising from the actuarial revaluation is recognized in the statement of comprehensive income for the period in which the revaluation occurred.
The amount recognized in comprehensive income is immediately reflected in retained earnings and is not included in profit or loss. Prior service cost (past cost) is charged to profit or loss during the plan adjustment period. Interest is calculated by applying the discount rate at the beginning of the period to the specified employee benefit asset or liability.
The costs of ongoing service under the defined benefit plan are recognized in the statement of profit and loss and other comprehensive income under employee benefit expenses to reflect the increase in liabilities due to employee services in the current year and cases of changes, reductions. or adjustment of benefits. Service costs for previous years are recognized directly in profit or loss and other comprehensive income. Actuarial gains and losses resulting from adjustments and changes in actuarial assumptions are recognized in equity in the statement of other comprehensive income in the period in which they arise.
SIGNIFICANT ACCOUNTING POLICIES (continued) Employee benefits (continued)
SIGNIFICANT ACCOUNTING POLICIES (continued) Property, plant and equipment
SIGNIFICANT ACCOUNTING POLICIES (continued) Property, plant and equipment (continued)
SIGNIFICANT ACCOUNTING POLICIES (continued) Leases (continued)
SIGNIFICANT ACCOUNTING POLICIES (continued) Financial instruments (continued)
SIGNIFICANT ACCOUNTING POLICIES (continued)
SIGNIFICANT ACCOUNTING POLICIES (continued) Impairment
SIGNIFICANT ACCOUNTING POLICIES (continued) Impairment (continued)
Cash and cash equivalents include cash in hand, deposits held with banks, other short-term highly liquid investments with maturities of three months or less from the date of the original investment, which are available to the Company without any restrictions, and the statement of cash flow statement is prepared according to the indirect method. The Company derecognises a financial liability (or part of a financial liability) from its statement of financial position when, and only when, it is extinguished; that is, when the liability specified in the contract is written off or canceled or expires. Sales and marketing expenses arising from the company's efforts underlying the marketing, sales and distribution functions.
All other costs, with the exception of sales costs and financial costs, are classified as administrative costs. The allocation of the common costs between the costs of sales, sales and distribution and the general and administrative costs, where necessary, is made on a reasonable basis taking into account the nature and circumstances of the common costs. The Company classifies assets and liabilities in the balance sheet based on current/long-term classification.
Expected to be realized or intended to be sold or consumed in the normal operating cycle;. There is no unconditional right to postpone the repayment of the obligation for at least twelve months after the date of the financial position. An operating segment is a group of assets and processes that together engage in the provision of products or services that are subject to risks and rewards that differ from those of other business segments and that are measured in accordance with ratios used by executive management.
Dividends are recognized as liabilities in the period in which they are approved by the board of directors. Final dividend is recorded in the period in which it was approved by the general meeting. The management determines basic earnings per share by dividing the result attributable to ordinary shareholders (the numerator) by the weighted average number of outstanding ordinary shares (the denominator) during the year.
The weighted average number of ordinary shares outstanding during the year is the number of ordinary shares outstanding at the beginning of the year, adjusted by the number of ordinary shares repurchased or issued during the year multiplied by a time weighting factor. The time weighting factor is the number of days the shares are outstanding as a ratio of the total number of days in the year; a reasonable approximation of the weighted average is sufficient in many circumstances. Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued upon the conversion of all the dilutive potential equity shares into equity shares.
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT (continued)
PROPERTY, PLANT AND EQUIPMENT (continued) c) The depreciation for the year has been allocated as follows
INVESTMENT PROPERTIES
INVENTORIES
TRADE RECEIVABLES
PREPAYMENTS AND OTHER RECEIVABLES
CASH AND CASH EQUIVALENTS
SHARE CAPITAL
STATUTORY RESERVE
LOANS AND FACILITIES
EMPLOYEE’S DEFINED BENEFIT OBLIGATIONS
ACCRUED EXPENSES AND OTHER PAYABLES
ZAKAT
ZAKAT (continued)
EARNINGS PER SHARE (EPS) a) Basic earnings per share
EARNINGS PER SHARE (EPS) (continued) b) Diluted EPS
REVENUE AND COST OF SALES
SELLING AND DISTRIBUTION EXPENSES
OTHER INCOME
TRANSACTIONS AND BALANCES WITH RELATED PARTIES
TRANSACTIONS AND BALANCES WITH RELATED PARTIES (continued)
SEGMENT INFORMATION (continued)
CORRECTION OF PREVIOUS YEARS’ ERRORS
CORRECTION OF PREVIOUS YEARS’ ERRORS (continued)
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS (continued)
Liquidity risk is the risk that a company will have difficulty raising funds to meet obligations related to financial instruments. Liquidity risk may arise from an inability to sell financial assets quickly at an amount close to their fair value. The concentrations of liquidity risk can arise from the repayment terms of financial liabilities, sources of loans or dependence on a specific market in which liquid assets are realised.
The Company's objective in managing capital is to safeguard the Company's ability to continue as a going concern so that it can continue to provide returns to shareholders and benefits to other stakeholders.
FINANCIAL INSTRUMENTS (continued) Capital management (continued)
FINANCE COSTS
SUBSEQUENT EVENTS
APPROVAL OF FINANCIAL STATEMENTS
