Current Assets Total EOUITY Assets Share Capital Legal Reserves Retained Earnings Other Reserves Total Capital. Unrealized losses from investments in FYTPL 11 Profits realized from the sale of investments in FYTPL II. Income from the sale of investments FYTPL I I Income from the sale of investment properties 8 Net money generated from /(used) investment.
ORGANIZATION AND PRINCIPAL ACTIVITIES
Based on these factors, the Company's management assesses that the Covid-19 pandemic has not had a significant impact on the financial results reported for the financial year ended 31 December 2021. The Company's management has also made an assessment of the Company's ability to continue as a going concern, and it believes that the Company has sufficient resources to continue its business for the foreseeable future. The management also has no significant doubts about the company's ability to continue operations.
The management of the company is currently monitoring the situation and its impact on the company's operations, cash flow and financial position.
BASIS OF MASUREMENT
ZAHRA AL WAHA FOR TRADING COMPANY (A SAUDI JOINT JOINT STOCK COMPANY) NOTES TO THE ACCOUNTS. The Company continues to monitor the development of the pandemic closely, although management is not currently aware of any expected factors that may change the impact of the pandemic on the Company's operations during or after 2022. Management believes, based on its assessment, that the Company has sufficient liquidity available to continue to meet its financial obligations for the foreseeable future as and when they fall due.
These financial statements were approved for issue by the Board of Directors on 26 Rajab 1443H (corresponding to 27 February 2022).
USE OF ESTIMATES, ASSUMPTIONS AND JUDGMENTS
USE OF ESTIMATES, ASSUMPTIONS AND JUDGMENTS (CONTINUED) The estimates and assumptions are reviewed on an ongoing basis
Tangible fixed assets are valued at cost, including capitalized financing costs, less any accumulated depreciation and any accumulated impairment losses. When parts of an item of property, plant and equipment have different useful lives, they are calculated as a separate item (key elements) of the property, plant and equipment. Any gains or losses on the sale of property, plant and equipment are recognized in the profit and loss account.
Depreciation is calculated for the cost price of property, plant and equipment less any estimated residual values using the straight-line method over their expected useful life, and depreciation is recognized in the result.
The ECLs for these financial assets are estimated using a flow rate based on the company's historical credit loss experience, adjusted for obligor-specific factors, general economic conditions and an assessment of both the current and forecasted direction of conditions at the reporting date, including time value for money where applicable. Lifetime ECL is recognized when there has been a significant increase in credit risk since initial recognition, and 12-month ECL is recognized when the credit risk of a financial instrument has not significantly increased since initial recognition. The assessment of whether the credit risk of a financial instrument has significantly increased since its initial recognition is made by taking into account the change in the risk of default occurring during the remaining life of the financial instrument.
In assessing whether the credit risk for a financial instrument has increased significantly since initial recognition, the Company compares the risk of a default occurring on the financial instrument at the end of the reporting period with the risk of a default occurring on the financial instrument as at the date of initial recognition . In making this assessment, the Company considers quantitative and qualitative information that is reasonable and supportable, including historical experience and forward-looking information that is available. The Company considers default in the case of trade receivables to occur when a customer balance moves into the "Inactive" category based on debt age analysis.
The Company assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is determined to have low credit risk if i) the financial instrument has a low risk of default, ii) the borrower has a strong ability to meet its contractual cash flow obligations in the short term and iii) adverse changes in the economic and economic conditions. Longer-term business conditions may, but not necessarily will, limit the borrower's ability to meet its contractual cash flow obligations. The measurement of expected credit losses is a function of the probability of default, the loss given default (i.e., the percentage of loss if a default occurs), and the exposure given default.
The assessment of the probability of default is based on historical data adjusted with forward-looking information. The company recognizes a loss due to impairment or reversals in the income statement and other comprehensive income for all financial instruments with a corresponding adjustment of their accounting value via a loss allowance account, except for investments in debt instruments that are measured at FVOCI, e.g. where the loss allowance is recognized in the income statement and other comprehensive income and is accumulated in the reserve for investment revaluation, and does not reduce the accounting value of the financial asset in the balance sheet.
SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 5 Financial liabilities
The balance of work in progress represents the amount paid for the purchase of a production line of stoppers, injection molds and a printing line. Transfers from ongoing projects during the year represent the value of machinery for the operation of the new production line. During the year, the Company sold investment properties (land) at a cost of Saudi Riyals 975,000, resulting in a gain on the sale of investment properties of Saudi Riyals 1.44 million included in other income.
The fair value of the real estate investment was determined by an external real estate appraiser, independent of the company (Appraiser: Qiam Real Estate Company, license number. The fair value of the investment properties is categorized as fair value of level 2 based on the data for the evaluation method used.
INTANGIBLE ASSETS
INVENTORIES
INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS
This balance represents the value of the year's discounts from the company's main supplier.
CASH AND CASH EQUIVALENTS
OTHER RESERVES
ACCRUED EXPENSES AND OTHER PAYABLES
The company has obtained credit facilities from local banks, long-term and short-term loans and letters of credit with a financing ceiling of SR 300.7 million. These facilities were obtained under Murabaha and Tawarruq agreements to finance working capital and some expansions and capital expenditure requirements. The facility agreements include covenants related to restrictions on dividends and other things, they require a minimum net worth and certain financial ratios to be maintained accordingly.
At the beginning of the year, the company obtained the bank's approval to break one of the bank's covenants. During the year ended 31 December 2021, financing agreements with some local banks were renewed to values of SR 227.93 million. for the purpose of purchasing and importing raw materials, financing working capital and financing capital expansion. Management monitors the covenants on a monthly basis, and in the event of an anticipated breach in the future, management takes the necessary measures to ensure compliance.
All the above-mentioned loans are loans that comply with the provisions of Islamic Sharia.
EMPLOYEES’ BENEFITS
The Company filed the Zakat declaration for the year 2020, the Zakat payable has been paid based on this declaration, A Zakat certificate was issued for this year 2020, and it is valid until 30 April
The movement in zakat provision during the year was as follows
COST OF SALES
The General Assembly, in its meeting held on April 26, 2021, corresponding to Ramadan 14, 1441, based on the recommendation of the Board of Directors in its meeting held on February 24, 2021, corresponding to Rajab 12, 1442, approved the distribution of cash dividends approved. in the amount of 15 million Saudi Riyal for the fiscal year 2020 at a rate of 1 Saudi Riyal per share.
CAPITAL COMMITMENTS, CONTINGENT LIABILITIES AND OTHER LIABILITIES A contingent liability is disclosed where the existence of the obligation will only be confirmed by
EARNINGS PER SHARE
FINANCIAL INSTRUMENTS – ACCOUNTING CLASSIFICATIONS AND FAIR VALUES Fair value represents the price that would be received to sell an asset or paid to transfer a liability in
FINANCIAL INSTRUMENTS – ACCOUNTING CLASSIFICATIONS AND FAIR VALUES (CONTINUED) 31 December 2021
FINANCIAL INSTRUMENTS – ACCOUNTING CLASSIFICATIONS AND FAIR VALUES (CONTINUED)
FINANCIAL INSTRUMENTS – ACCOUNTING CLASSIFICATIONS AND FAIR VALUES (CONTINUED)
Liquidity risk is the risk that the Company will experience difficulty in meeting the obligations associated with its financial obligations settled by delivering cash or another financial asset. The Company aims to maintain the level of its cash and cash equivalents at an amount over the next 90 days that exceeds the expected cash outflow from financial liabilities (other than trade payables). The Company has unused bank facilities and open letters of credit amounting to SR 23.39 million (December 31, 2020: SR 61.5 million) as at the balance sheet date to meet liquidity requirements (Note 18-d).
The following is an analysis of the undiscounted contractual maturities of the Company's financial obligations as of December 31, 2021. Market risk is the risk that changes in market prices, such as exchange rates, interest rates and stock prices, will affect the Company's earnings or stock prices . the value of his holdings of financial instruments. Loans approved at variable interest rates expose the Company to interest rate risk on cash flows.
The Company's strategy was to keep the adjusted debt-to-equity ratio adjusted to moderate limits. The Company manages capital structure in the context of economic conditions and the characteristics of the risks of main assets. In order to maintain or adjust capital structure, the Company may adjust dividends paid to shareholders and issue new shares.
28-1 In the normal course of its business, the Company conducts business with related parties, including companies owned by certain shareholders, the Board of Directors and key executives of the Company. Key personnel included in other receivables. Management personnel in key positions included in other payables -- 47,000 Key personnel. End-of-service benefits Allowance to attend the meeting of the Company's Board of Directors.
Segment profit (loss) before Zakat is used to measure performance because management believes that this information is the most relevant in evaluating the results of the respective segments relative to other entities operating in the same industries:. segment Total.
SUBSEQUENT EVENTS
