Professional Documents
Culture Documents
Overview
3 Highlights of the Year
4 Board of Directors
6 At a Glance
Strategic Report
8 Business Strategy
10 Chairman’s Statement
11 Market Review by Sector
12 Vice Chairman and Managing Director’s Report
13 Investment Rationale
14 Aamal Sustainability Framework and ESG Disclosures
18 Operational Review
32 Corporate Social Responsibility
Corporate Governance
34 Objective
34 Achievements and activities planned
35 Board of Directors
35 Board Composition
36 Board Committees
37 Executive Management
38 Organisational Structure
39 Annual Ordinary and Extra Ordinary General Assembly Meeting
Financials
40 Independent Auditor’s Report
44 Financial Statements and Notes
2 Aamal Company Q.P.S.C. Annual Report 2017
Property Managed
Services
More information in Operational Review on page 28 More information in Operational Review on page 30
1,604.2m 421.0m
-43.3% -15.7%
5.3% 1.3%
19.8%
Property Property 30.0%
48.0%
Trading and Distribution 35.9% Trading and Distribution
Industrial Manufacturing Industrial Manufacturing
Managed Services 39.0% Managed Services 20.7%
–– Total revenue down 43.3% to QAR 1,604.2m (2016: QAR 2,829.1m), –– Establishment of new supply chains to help overcome the challenges
primarily due to the reclassification of two business entities within the in terms of importing materials and products related to the businesses
Industrial Manufacturing segment from subsidiaries to joint ventures, within the Industrial Manufacturing and Trading & Distribution
with a consequent change in their accounting presentation segments
–– Gross profit down 20.2% to QAR 545.6m (2016: QAR 683.4m) –– City Center Doha shopping mall Phase 2 development is on budget
–– Net profit before share of net profits of associates and joint ventures and on track for completion by the end of 2018 that will lead to an
accounted for using the equity method and fair value gains on increase in total retail space of around 12%. During the fourth quarter
investment properties (‘net underlying profit’) down 15.7% to QAR of 2017, renovation of the East Food Court was completed and the
421.0m (2016: QAR 499.2m) restaurants were handed over to the tenants to be fitted out
–– Net underlying profit margins have increased by 8.7 percentage points –– In early 2018, Aamal Real Estate announced the conclusion of
to 26.3% (2016: 17.6%) negotiations which had started in 2017 to acquire additional property
–– Share of net profits from associates and joint ventures accounted assets located in prime Doha locations, valued at approximately QAR
for using the equity method increased 69.4% to QAR 102.0m 179.5 million (USD 49.3 million).
(2016: QAR 60.2m) –– In early 2018, announcement of three major new industrial projects
–– There were no fair value gains on investment properties during 2017 for the production of aluminium, copper and drums through the
(2016: QAR 0.9m) Senyar Industries joint venture, having applied for the necessary
–– Total Company net profit 1 down 6.6% to QAR 523.1m (2016: QAR approvals in 2017. These will be the first of their kind in Qatar and are
560.2m), with net profit attributable to Aamal equity holders up 8.4% expected to become operational by the end of 2018 and 2019
to QAR 500.9m (2016: QAR 462.3m) –– Aamal Trading and Distribution expanded its geographic presence
–– Reported earnings per share increased 9.6% to QAR 0.80 (2016: QAR 0.73) in Doha with the opening of two additional showrooms, the
–– Net capital expenditure down 16.8% to QAR 106.5m (2016: QAR introduction of a new ‘Dial a Tire’ service and the launch of Qatar’s
128.0m), reflecting fluctuations in contractor billing profiles that are first Bridgestone Fleet Point Center
milestone-based –– Our investor relations website has been ranked third amongst the 45
–– Net positive cash position of QAR 113.1m (30 June 2017: net positive companies listed on the Qatar Stock Exchange (‘QSE’), as part of the
cash of QAR 134.7m) 2017 Annual Investor Relations Excellence Program. This program,
now into its third year, is an initiative introduced under the auspices
Total Company net profit is before the deduction of net profit attributable to non-
1
Board of Directors
Sheikh Abdullah Bin Hamad Al Thani Sheikha Al Jazi Bint Faisal Al Thani
Board Member Board Member
Non-Executive Non-Executive
–– A member of the Board of Aamal Company since 2010 –– Board member since 2016 representing Al Rayyan
as a representative of Al Jazi Real Estate Investment for Education
Company W.L.L. –– Holds a Master’s degree in International Peace and
–– A member of the Qatari Businessmen Association and Security from King’s College London
attained the rank of Major in the Qatari Armed Forces –– Holds a Bachelor’s Degree in Culture and Politics from
–– Sheikh Abdullah holds a Bachelor’s degree in business Georgetown University, Qatar
from Kingston University (UK)
Sheikh Jabor Bin Abdulrahman Bin Mohamed Al Thani Mr Kamel Mohamed El Egla
Board Member Board Member
Non-Executive Non-Executive
–– Board Member at Aamal Company since February 2017 –– Board Member at Aamal Company since February 2017
representing Al Faisal Holding representing City Limousine
–– Vice Chairman and Managing Director of Transind Group –– Chief Real Estate Officer of Al Faisal Holding since 2005
since 2004 –– Mr. Kamel has joined Al Faisal Holding since 1985, where
–– Founder and Managing Director of Al-Bayan Insurance he spearheaded most of Al Faisal construction projects
Broker since 2011 –– General Manager of Derwind Trading and Contracting
–– Managing Director of Al Arabi Sports Club –– Holds a Bachelor’s Degree in Civil Engineering, Al Azhar
–– Holds a Bachelor of Business Administration from University Egypt
European University, Geneva, Switzerland, 2009
–– Certified Financial Analyst from American Academy
of Financial Management, 2007
–– Holds Professional Diploma in Financial Management
and Banking from The Arab Academy for Banking and
Financial Sciences, 2006
6 Aamal Company Q.P.S.C. Annual Report 2017
At a Glance
Strength through Incorporated in 2001 in Qatar and listed on the Qatar Stock
Exchange in 2007.
diversity
Geographical focus on Qatar at present with intentions to
expand further in the region.
Operations across 26 active business units with market
leading positions in key sectors including: industrial
manufacturing, retail, real estate, managed services and the
medical equipment and pharmaceutical sectors.
Strategy focused on three pillars for sustained,
profitable growth:
Our corporate strategy has always been to create and i) Increasing focus on industrial manufacturing and related
high growth sectors;
enhance long term shareholder value through the ii) Continued growth, diversification and innovation across
continued profitable operations and expansion of its other existing businesses to enhance market positions and
optimise performance; and
diversified business platform, with particular reference to: iii) Continued application of clear and disciplined operational
and financial principles underlying our strategic
• Offering high quality products and services growth initiatives.
• Being alert and responsive to the markets’ Uniquely positioned to benefit from increased private and
public sector demand, particularly for infrastructure
evolving needs development, as Qatar is transformed into an advanced and
self-sustaining economy.
• Acting as a socially responsible member of society, Strong backing from Al Faisal Holding Company, a long term
adopting ethical and sustainable policies geared major shareholder of Aamal.
Net Profit Before Fair Value Gains on Investment Properties 523.1 559.4 521.3 348.5 267.2
Net Underlying Profit Margin Before Fair Value Gain1 % 26.3% 17.6% 16.6% 15.4% 11.7%
Fair Value Gains on Investment Properties 0.0 0.9 135.4 251.7 245.1
Total Company Net Profit for the year 523.1 560.2 656.7 600.2 512.3
Profit attributable to equity holders of the parent 500.9 462.3 601.0 577.1 506.8
Reported EPS (based on the Disclosed Financial Statement) 0.80 0.73 0.95 0.96 0.85
1. Excluding share of profit from equity accounted for investments in associates and joint ventures.
2. Reported EPS for prior years have been re-based using the current number of shares in issue (630 million) to facilitate like-for-like comparisons
3. Assume payable in cash unless otherwise stated
4. Subject to approval at the Annual Ordinary General Assembly Meeting (22 April 2018)
5. Comprised of two elements: QAR 1.0 in cash and QAR 0.5 in bonus shares (i.e. 5% of each share’s nominal value of QAR 10; total number of shares in issue increased
to 630 million (600 million previously))
Aamal Company Q.P.S.C. Annual Report 2017 Overview
7
Our structure
Innovative 70%
Lighting****
Business Strategy
growth
The Company seeks to take advantage of the An increased focus on
growth opportunities enabled by the 2030 industrial manufacturing
National Vision, and to leverage its position
as a leading participant across various key
and related high growth
economic sectors through a focus on three
sectors to capitalise
pillars for sustained, profitable growth: on significant demand
arising from wider
1. An increased focus on industrial manufacturing
and related high growth sectors to capitalise industrialisation of
on the significant demand arising from wider
industrialisation of the Qatari economy; the Qatari economy
2. Continued growth, diversification and innovation
across other existing businesses to enhance
market position and optimise performance; and Through leveraging its significant hydrocarbon
3. Continued application of clear and disciplined surpluses, Qatar aims to transform itself into a
operational and financial principles
underpinning our strategic growth initiatives.
diversified and knowledge-based economy. To date
this has been in two major phases: the first phase
spanned from 2000-2011 and was mainly driven by
expansion of its LNG facilities; followed by the
current phase which has seen a shift onto the non-
hydrocarbon sector and a major program of
infrastructure investment, designed to diversify the
economy. Underpinning this has been the National
Vision 2030 and preparation ahead of the FIFA World
Cup to be hosted by Qatar in 2022.
As per the Qatar’s State Budget for Year 2018,
QAR 29 billion (USD 8 billion) has been earmarked
for new projects in 2018. The 2018 budget also
focuses on supporting private investments,
especially in the food and agricultural sectors, SMEs
and the development of infrastructure in industrial
areas and FTZs (Free Trade Zones). Through its
existing scale and market leading positions, along
with plans to expand its industrial manufacturing
operations further, Aamal is very well positioned to
capitalise on the business opportunities in Qatar
that will be afforded and thereby create long-term
shareholder value.
Infrastructure projects drive GDP growth, not Aamal maintains strong commitment to
only through directly increasing the level of financial and operational progress supported by a
investment spend in the economy, but also clear corporate vision and strong management
indirectly through an expansion in population team who steer the Company towards achieving its
which in turn raises the level of consumption goal. We believe the success and growth of our
(a ‘multiplier’ effect). business can be attributed to consistency in terms
Together, these factors help to expand the size of standards and policies; the ability to closely
of the non-hydrocarbon sector and contribute to monitor and control costs allied with our focus on
the diversification of the economy. Aamal’s existing diversification; the efforts of our supportive local
businesses are well placed to benefit from this and international partners and our shareholders.
structural transformation, with market leading Our commitment to corporate governance and
positions across the economic spectrum. business ethics remains at the forefront of everything
we do.
Chairman’s Statement
A solid
performance
throughout
On behalf of myself and the Board of Directors, I am Allied to this is Aamal’s strong financial position and cash
generation which means that should we identify a potential
pleased to present a summary of the financial results value‐creating opportunity, we are able to act quickly, often
giving us a competitive advantage over our peers. An excellent
of Aamal Company Q.P.S.C., with an approximate example of this is the decision we announced in early January
to proceed with three major new industrial projects which will
10% increase in Earnings per share and a net profit be the first of their kind in Qatar, having applied for the
necessary approvals in 2017. Not surprisingly, we are also the
attributable to equity holders QAR 500.9m, praise partner of choice for those international blue‐chip names
be to God. looking to enter the Qatari market for the first time.
I am also pleased to announce that Board of Directors has
Looking at these results, I’m pleased to report that Aamal recommended a cash dividend QAR 0.60 a share (equivalent to
has been at the forefront here, which in the current climate is a 6% of paid‐up share capital), subject to the approval at the
very impressive result indeed. I should also highlight that in Annual General Assembly Meeting which is due to take place
2017 we have applied a change in the accounting presentation on April 22, 2018.
of a couple of business entities during the year, which has a Furthermore, I would like to extend my thanks and
direct impact on presentation of the numbers between this appreciation to our valued shareholders for their trust and
year and the previous year and in specific to the Revenue. The support in us, and we promise that we will continue giving our
effects of this change will remain valid until after Q4 2018, by best efforts to further develop the activities of the Company,
which time they will have reversed out. and to continue our search for further growth that benefits all
Looking at the market conditions, while the continuing stakeholders.
blockade by a number of neighbouring Gulf countries has Finally, I would like to take a moment to express my
undoubtedly created some challenging headwinds, I am very gratitude and appreciation to all employees of the company, to
proud to say that Qatar as a nation is successfully navigating our partners, our cooperative clients, and to all those who had a
through them. I believe this is testimony not only to the role in supporting any growth or prosperity Aamal Company
resilience of the Qatari economy but also to the strong and clear has achieved, which is a reflection of the growth and prosperity
leadership that our national Government provides as we strive of the Qatari economy, under the wise leadership of His
to achieve the holistic goals set out in the Qatar National Vision Highness Sheikh Tamim bin Hamad Al Thani, Emir of the State of
2030, including diversification of the economy. I must also Qatar, and the esteemed Government who have the greatest
mention the resourcefulness of the Qatari people in meeting role in overcoming any challenges facing the national economy.
these challenges head on, as they did in previously demanding
times including the global slump post‐2007 and the oil price Faisal Bin Qassim Al Thani
lows of early 2016. Chairman
Aamal has always been noted for its practicality and
decisiveness, and no better is this demonstrated than by how
rapidly we moved to help establish alternative supply chains in
the face of the continuing embargo against Qatar. This resilience
is also borne out by the diversity of our business model, so that
if one sector is experiencing a tightening in general business
conditions for example, there will be others that are able to
more than compensate.
Aamal Company Q.P.S.C. Annual Report 2017 Strategic Report
11
The Qatari Government considers industrial development This sector has been one of the strongest and fastest
to be an integral part of its plan to diversify the economy through growing sectors in Qatar for several decades, as the country
leveraging off its huge natural gas reserves, and is strongly continues to develop healthy trade relations with the world’s
supporting local investment into the manufacturing sector. In major economies. In terms of oil and gas products, Qatar is
addition to the Government’s plan to invest in several downstream currently tilting its export partnerships more towards the
industries related to Oil & Gas sector, the Government is also emerging markets, south-east Asia in particular, whilst its imports
encouraging private companies to invest in setting up local have grown and become more diverse, particularly in terms
manufacturing and assembly facilities, spurred on by the large- of automobiles, building interiors and furniture, clothing,
scale infrastructure development that is happening in the country electronic goods, food, infrastructure goods, medical equipment
including projects related to the Doha Metro and the 2022 FIFA and pharmaceuticals.
World Cup. Opportunities for business in the trading sector have
Achievement of self-sufficiency in food, dairy and continued to grow in line with the country’s ever-increasing
agricultural products has also been given more emphasis by the population and development of its infrastructure that includes
authorities, which has encouraged significant private investment significant projects related to the Doha Metro and the 2022 FIFA
into these segments. World Cup. Moreover, the core sectors emphasised by the
One major advantage of Qatar is the presence of Government key to its National Vision 2030 (such as healthcare,
competitively priced raw materials, including secure energy education, technology and social welfare development), are in
supplies. Added to this is the full coming on-stream of the new turn driving demand for several high value products that are
Hamad Seaport which has already started making a positive currently not manufactured in Qatar.
impact on Qatar’s growth as a regional trading hub for various
industrial activities in the Middle East. By establishing new trading
routes and investing in new trading partners, this has helped to
underpin the economy’s impressive growth record.
Qatar is going through a phase of rapid growth in the retail The Services sector in Qatar is expected to grow strongly
industry with several large size shopping malls launched already over the next few years, reflecting the initiatives taken by the
with a combined area of over 1.3m sqm., and a further four mid- Government to improve the general level of services. Healthcare,
size malls are expected to open during 2018. In addition to this education, tourism and software/technology related sub-sectors
increased supply of retail space in Qatar, cost-cutting and have all been given greater strategic focus as part of the Qatar
restructuring measures adopted both within the private and National Vision 2030. As such, the services sector has experienced
public sectors in Qatar in response to the ongoing economic strong structural growth in recent years, which has been
blockade of the country by a number of neighbouring Gulf in contrast to the slump in global energy prices of recent times,
countries has had a knock-on effect on consumer spending more and is expected to sustain this positive momentum over the
generally. To help withstand these challenges, positive attributes coming years.
of accessibility, location and size are more important than ever; The Government’s steadfast commitment to transform
City Center Doha ticks all these boxes, remaining the premier mall Qatar into a major tourist and entertainment destination in the
in the country. region by developing new and innovative tourist attractions is
In terms of rents, residential occupancy rates have dropped expected to enhance inbound tourist flows from across the
marginally due to new housing stock recently coming onto the globe. By hosting several global sporting events in Doha, and
market which has placed some downward pressure on rents, at with the continued support given by the Government to the
least until this additional supply has worked its way through the travel industry (such as easing in entry visa requirements for many
system; in contrast however, commercial rents at major locations nationalities), this will help to underpin the sector’s growth
have managed to remain fairly stable. credentials, at least for the near term.
Furthermore, with more resources now being allocated to
improving the quality of education and healthcare in Qatar, partly
through making better use of technology, the level of demand for
local knowledge-based solutions should increase, and thereby
help to kick start an indigenous homegrown tech sector with
related supporting services.
12 Aamal Company Q.P.S.C. Annual Report 2017
Investment Rationale
Why invest in
Aamal Company?
Framework and company core values and incorporates the four pillars of the
Qatar National Vision 2030.
Value Creation
* Revenue excludes Doha Cables as of 1 April 2017, as it is no longer treated
as subsidiary, but as a joint venture such that their results are now reflected
on an equity method basis rather than on a line-by-line full method basis.
Aamal Company Q.P.S.C. Annual Report 2017 Strategic Report
15
Business Ethics and Transparency We also expect our business partners, including suppliers, to
Aamal Company’s ongoing commitment towards high adopt and adhere to similar principles (QSE#18). As of 2017, we
levels of business ethics and transparency is shared across our have no outstanding or recorded incidents or grievances related
Board of Directors, our management, our portfolio companies, to any of the above among our reporting companies (QSE#17).
and all our stakeholders. We know that sound governance and Additional information that is recommended by the QSE
ethical practices will contribute to long-term business success. Guidance on ESG Reporting on the subject of governance can
Aamal’s Corporate Governance Report covers the be found in the governance section of this report.
procedures followed by the company to ensure good
governance practices. Our Board Charter covers critical Workplace
governance items including the role of the Board of Directors Aamal Company and its five portfolio companies
and its committees , audit and internal control mechanisms, engaged in this ESG disclosure exercise have 1000 full time
remuneration, and shareholders’ rights. Aamal’s governance employees. Aamal Company has an important responsibility for
framework abides with the provisions of the Governance Code ensuring a safe and welcoming environment for our people. We
for Companies and Legal Entities Listed in the Main Market No. put safety first and are committed to ensure compliance with
(5) of 2016 (the “Code”) issued by the Qatar Financial Markets our occupational health policy and safety procedures (QSE#14).
Authority (“QFMA” or the “Authority”), and the Commercial Operational excellence at Aamal Company starts with the
Companies Law No. (11) of 2015 (the “Companies Law”). personal and professional development of every member of
All of our portfolio companies and their employees abide our team. We strive to provide our employees with the tools and
by a Code of Conduct (QSE#30). This also extends to our resources they need to be successful. Aamal Company’s Training
suppliers – setting our high standards and expectations for & Development Program & Policy encourages our employees to
business integrity throughout our supply chain (QSE#31). develop themselves professionally and enhance their
Aamal does not tolerate any form of bribery or corruption knowledge through the development of new skills and
in any of its portfolio companies. Our anti-corruption policy competencies. Aamal Company employees undertake training
includes clear anti-corruption rules and guidelines that are courses, workshops, on the job training, self-study, seminars and
strongly reinforced, including through awareness raising and information technology training.
training programmes for key managers and staff (QSE#32). Aamal Company has recently established the ‘Employee
Aamal Company is fully committed to respect all human of the Year Award’ for employees in the non-management and
rights, as articulated in the Universal Declaration of Human non-supervisory positions. The award will be presented to the
Rights, and the International Labor Organization’s (ILO) (QSE#16). employee who has contributed to and/or achieved superior
business results for Aamal Company.
Corresponding to
Workplace aspect Performance QSE Indicator Alignment to QNV
Corresponding
Environmental aspect Performance to QSE Indicator Alignment to QNV
Total amount of energy usage in MWh 90,864 excluding Aamal Company Yes
Energy Intensity (kWh/m )2
100.7 excluding City Center Doha 4
and Aamal Company
Total greenhouse gas emissions (tonnes) 51,426.944 5
Primary source of energy used by the company electricity 6
Specify percentage of energy used from renewable sources 0 7 Environmental
Total water consumption (m ) 3
201,124 8 development
Total waste recycled or reused (tonnes) 11,628 9
Total waste water generated (m ) 3
14,248 9
Total non-hazardous waste produced (tonnes) 21,460.7 excluding Doha Cables 9
and Aamal Company
Total amount of waste water re-used (m3) 4,115 9
Appendix: ESG Reporting Against Qatar Stock Exchange Guidance for ESG Reporting
ESG Categories QSE KPI # ESG Key Performance Indicators Measurement annual, unless indicated otherwise Page Reference/Comments
Environmental 1 Environmental Policy Does the company publish and follow an environmental policy? Yes
Yes/No
2 Environmental Impacts Any legal or regulatory responsibility for an environmental impact? No
Yes/No If yes, explain
3 Energy Consumption Total amount of energy usage in MWh or GJ p.16
4 Energy Intensity Amount of energy used per M3 of space, and per FTE p.16
5 Carbon/GHG Emissions Total amount of Carbon and Green House Gas emissions in metric tons p.16
6 Primary Energy Source Specify the primary source of energy used by the company p.16
7 Renewable Energy Intensity Specify the percentage of energy used that is generated from p.16
renewable sources
8 Water Management Total amount of water consumption, and details in respect of recycling p.16
if any, in M3
9 Waste Management Total amount of waste generated, recycled or reclaimed, by type and weight p.16
Social 10 Full Time Employees Number of full time employees p.15
11 Employee Benefits Total amount of employee wages and benefits p.15
12 Employee Turnover Rate Percentage of employee turnover p.15
13 Employee Training Hours Total number of hours of training for employees divided by the number p.15
of employees
14 Health Does the company publish and follow a policy for occupational and global Yes
health issues? Yes/No
15 Injury Rate Total number of injuries and fatal accidents relative to the number of FTEs p.15
16 Human Rights Policy Disclosure and adherence to a Human Rights Policy p.15
17 Human Rights Violations Number of grievances about human rights issues filed, addressed and resolved p.15
18 Child & Forced Labour Does the company prohibit the use of child or forced labour throughout the Yes
supply chain? Yes/No
19 Women in the Workforce Percentage of women in the workforce p.15
20 Qatarisation Percentage of Qatari nationals in the workforce p.15
21 Community Work Number of hours spent, and/or other community investments made p.15
as a percentage of pretax profit
22 Local Procurement Percentage of total procurement from local suppliers p.15
Governance 23 Board – Diversity Percentage of Board seats taken by women p.35
24 Board – Independence Percentage of Board seats taken by independent directors p.35
25 Board – Separation of Powers Specify whether the CEO is allowed to sit on the Board, act as the Chairman, p.36
or lead committees
26 Voting Results Disclosure of the voting results of the latest AGM Announced through
QSE’s website
27 CEO Pay Ratio Ratio of CEO salary and bonus against the median FTE salary and bonus N/A
28 Gender Pay Ratio Ratio of median male salary to median female salary N/A
29 Incentivised Pay Specify the links between (executive) remuneration and performance targets p.34
30 Ethics Code of Conduct Does the company publish and follow an Ethics Code of Conduct? Yes
Yes/No
31 Supplier Code of Conduct Does the company publish and follow a Supplier Code of Conduct? Yes
Yes/No
32 Bribery/Anti-Corruption Code Does the company publish and follow a Bribery/Anti-Corruption Code? Yes
Yes/No
ESG Reporting 33 Sustainable Reporting Does the company publish a GRI, CDP, SASB, IIRC or UNGC report? No
Generally Frameworks Yes/No
34 External Assurance Are the company’s ESG disclosures assured by an independent third party? No
Yes/ No
18 Aamal Company Q.P.S.C. Annual Report 2017
Operational Review
Operational Review
– by Segment
REVENUE
QAR m 2017 2016 Change %
NET PROFIT
QAR m 2017 2016 Change %
1
Before fair value gains on investment properties.
Aamal Company Q.P.S.C. Annual Report 2017 Strategic Report
19
Industrial Manufacturing
It is important when looking at these figures to be fully aware that the year-on-year comparisons
have been distorted by an accounting change that took place during the year.
Gulf Rocks
Effective ownership by Aamal is 74.5%; in 2012, Ci-San
Trading purchased 51%, with Aamal directly acquiring the
remaining 49%. Gulf Rocks itself was established in 2000, and is
a leading importer and provider of high quality gabbro
aggregates, which are widely used in concrete products.
In 2017, Aamal Company commenced the sale of the
treasury shares owned by Gulf Rocks Company W.L.L. in
accordance with directives from Qatar Financial Market
Authority (QFMA) on this matter and complying with Article
(15) of the regulations concerning listed companies buying and
selling their own shares. The total number of treasury shares
owned by Gulf Rocks and approved by QFMA for sale is 157,066
shares. The sale process was fully completed in early 2018.
Gulf Rocks currently imports gabbro from Sohar, Oman.
Aamal Company Q.P.S.C. Annual Report 2017 Strategic Report
23
5. Advanced Pipes and Casts Company (APC) 6. Frijns Structural Steel Middle East
Aamal owns 50% of Advanced Pipes and Casts Company Aamal has a 20% interest in Frijns Structural Steel (60% is
(APC), established in July 2010 as a joint venture between the held by Frijns Industrial Group of the Netherlands, remaining
Company and Lokma Group, a leading pipe manufacturer in the 20% is by a third party). Frijns Structural Steel – Middle East
Middle East. APC started commercial production at the end of started operations in Qatar in 2009 by opening its first
2014, with extensive production capacity that is largely production facility in the region, which produces steel for the
automated and has the flexibility to respond swiftly to changes petrochemical and process industries, including all associated
in end-market demand. engineering, production, anti-corrosion, construction and
2017 was a challenging year for APC due to a tightening assembly work.
in market conditions and raw material supply issues; as a result,
APC was neither able to increase its market share in concrete
pipes, nor expand its product range, so refrained from adding to
its GRP (glass fibre reinforced plastic) manufacturing capability.
Market conditions for 2018 appear to be more benign
however with the planned roll-out of new infrastructure
projects by the government; consequently, APC is planning
to add two new production lines for the manufacture of 7. Innovative Lighting
GRP pipes. Aamal owns 70% of Innovative Lighting ‘QLEDs’, a joint
venture with C&C Lightway of South Korea, and a separate
third party.
This entity is currently in liquidation.
24 Aamal Company Q.P.S.C. Annual Report 2017
the Curved TV in two different sizes (39- and 55-inch), into the 5. Ebn Sina Pharmacy
Qatari Market during 2017. Aamal has a 100% interest in Ebn Sina Pharmacy which
was formerly known as Ebn Sina Health Care Solutions. Ebn Sina
Pharmacy is managed by Ebn Sina Medical and the rebranding
was carried out – ahead of expansion plans that are expected
for this pharmacy chain.
In 2017, a lease contract was signed for a new pharmacy
located in Ras abu Aboud, which is due to open in the second
quarter of 2018.
Aamal Company Q.P.S.C. Annual Report 2017 Strategic Report
27
Property
Net profits for the Property segment rose by 3.8% to QAR 268.1m, primarily attributable to an
increase in the underlying margin to 81.8% compared to the previous year.
Managed Services
Although revenues fell marginally year-on-year, a contraction in margins led to a 28.1%
drop in net profit.
2. Aamal Services
Aamal owns 100% of Aamal Services which provides a
wide range of services including cleaning, hotel and hospitality
services, waste collection and disposal (including medical
waste and solid waste), ground maintenance and landscaping,
pest control and fleet/car washing.
In 2017, Aamal Services was able to secure new and
higher value contracts. The Company’s aim in 2018 is to focus
on providing a wider range of services, and targeting
educational and healthcare institutions in order to help open
up these markets more.
Furthermore, to focus on the pest control business as a
standalone business offering, rather than just as an ‘add-on’
service which it is currently.
Aamal Company Q.P.S.C. Annual Report 2017 Strategic Report
31
Corporate Governance
Board of Directors
Size and charter
As of 31 December 2017, the board had six (6) Board members as required by the Articles of Association. The General Assembly elects members of the Board for
3 years. The tenure for the existing Board of Directors runs until 2019.
Board composition
The board is composed of the following members as of 31 December 2017:
Number of
Director Name Party represented Date of Election/Appointment Position Member classification shares owned 1, 2 %
Sheikh Faisal Qassim Faisal In his personal capacity Re-elected on Chairman Non-executive 157,373,554 1
24.97
Al Thani 17 April 2016
Sheikh Mohamed Faisal In his personal capacity Re-elected on Vice-Chairman Executive 6,300,000 2 1.00
Qassim Al Thani 17 April 2016 Managing Director
Sheikh Jabor Abdulrahman Al Faisal Holding Re-elected Ordinary Member Non-executive 1,090 1 1.10
Jabor Al Thani Company W.L.L. on 17 April 2016 283,500,000 2
Representative 45.00
appointed on
5 February 2017
Sheikh Abdullah Hamad Al Jazi Real Estate Re-elected on Ordinary Member Non-executive 6,300,000 2 1.00
Qassim Al Thani Investment Company W.L.L. 17 April 2016
Sheikha Al Jazi Faisal Qassim Al Rayyan International Re-elected on Ordinary Member Non-executive 3,150,000 1 1.00
Al Thani Educational 17 April 2016 6,300,000 2 1.20
Company W.L.L.
Kamel Muhammad Al Agla City Limousine Re-elected on Ordinary Member Non-executive 6,300,000 2 1.30
Company W.L.L. 17 April 2016
Representative 1.00
appointed on
5 February 2017
1. Held directly in a personal capacity
2. Held by the business entity whom the director is the representative
Starting from 2018, the Board members will provide the Board Secretary with the Independence and Conflict of Interest Declaration to declare whether they
undertake any legally prohibited positions. The Board Secretary will then keep safe custody of these declarations.
36 Aamal Company Q.P.S.C. Annual Report 2017
Sheikh Faisal Qassim Faisal Al Thani Chairman Chairman of Al Faisal Holding W.L.L.
Chairman of Al Rayyan Tourism Investment Company ‘ARTIC’
Chairman of Al Faisal International Investment
Board Member of International Financial Securities
Sheikh Mohamed Faisal Qassim Al Thani Vice-Chairman and Sits on the Board of Directors of Al Khaliji Bank Q.P.S.C.
Managing Director Vice Chairman of Al Faisal Holding W.L.L.
Vice Chairman of Al Rayyan Tourism Investment Company ‘ARTIC’
Vice Chairman of International Financial Securities
Chairman of Optimized Holding
Sheikh Jabor Abdulrahman Jabor Al Thani Member Board Member at Aamal Company since February 2017 representing Al Faisal Holding W.L.L.
Vice Chairman and Managing Director of Transind Group since 2004
Founder and Managing Director of Al-Bayan Insurance Broker since 2011
Sheikh Abdullah Hamad Qassim Al Thani Member A member of the Board of Aamal Company since 2010 as a representative
of Al Jazi Real Estate Investment Company W.L.L.
Sheikha Al Jazi Faisal Qassim Al Thani Member Board member since 2016 representing Al Rayyan International Education
Mr. Kamel Muhammad Al Agla Member Board Member at Aamal Company since February 2017 representing City Limousine
Company W.L.L.
Board Member of Derwind Trading and Contractor
Board’s role
The Board is responsible for independently overseeing the activities of the Company with the objective of sustainable creation of value, taking into account the
interests of the shareholders, its employees and other stakeholders.
The Board members must act in good faith and in such manner as they reasonably believe to be in the best interests of the company. For more details, please refer
to the full Corporate Governance Report available on the Company’s website.
In all circumstances, the Board composition must ensure there is a limitation on the concentration of powers in order to prevent one Board member alone having
unfettered powers to make decisions as per Article 5 of the Code.
Board committees
The Board shall form Committees with sufficient expertise. The Committees serve to increase the efficiency of the Board’s work and the handling of complex issues.
The respective Committee Chairman shall report regularly to the Board on the work of their Committee.
The Board issues a decision to nominate the Chairman and members of each Committee, identifying its responsibilities, duties, and work provisions and procedures.
The appointment of the Board Committees will take place after AGM/EGM in compliance with the new Corporate Governance Code.
Executive Committee
The Executive Committee is mainly responsible for handling the Company’s strategy, investments and financing by reviewing, evaluating and recommending the
strategic plans and decisions to be taken by the Board.
Audit Committee
The Audit Committee shall handle issues of financial reporting, risk management and compliance, and the appointment and work of the external auditor (including
determining the independence of the external auditor, issuing the audit mandate to the external auditor, determining auditing focal points and negotiating the
fee agreement with the external auditor subject to the approval of the General Meeting).
* Nomination and Compensation Committees were combined into one unified committee ‘Nomination and Remuneration’ with effect 28 February 2018.
** The Corporate Governance Committee was cancelled and the responsibility to draft the corporate governance report will be delegated to the Executive Management, with effect 28 February 2018.
Aamal Company Q.P.S.C. Annual Report 2017 Corporate Governance
37
Executive Management:
Organisational Structure
Executive
Committee SHAREHOLDERS
Audit
Committee BOARD OF DIRECTORS
Managing Director
Compensation
Committee**
Nomination
Committee**
Chief Business
Development Officer Chief Operating Officer Chief Legal Officer Chief Financial Officer
Business Development
Legal Department
Department
Information
Aamal Subsidiaries Subsidiaries Human Capital Corporate Procurement
Technology
General Managers Operations Development Communications Department
Department***
Finance Department,
Investor Administration Treasury
Head Office, Branches
Relations Department Department
and Subsidiaries
* The Corporate Governance Committee was cancelled and the responsibility to draft the corporate governance report will be delegated to the Executive Management with reference to the Board
Meeting dated 28 February 2018
** The roles and responsibilities of the Nomination Committee and the Compensation Committee have been combined into one single committee ‘Nomination and Remuneration Committee’,
with reference to the Board Meeting dated 28 February 2018
*** IT Solutions are outsourced
Aamal Company Q.P.S.C. Annual Report 2017 Corporate Governance
39
The Annual Ordinary & Extra-ordinary General Assembly meetings of the Company will be held on Sunday, April 22, 2018 at 5:30pm at City Center Rotana Doha
Hotel, Al Massa Hall. In the event that a quorum is not achieved at either of the meetings, the meeting(s) will be then held on Sunday, April 29, 2018 at 4:30pm at
the aforementioned location.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA
Code) and the ethical requirements that are relevant to our audit of the consolidated financial statements in the State of Qatar. We have fulfilled our other ethical
responsibilities in accordance with these requirements and the IESBA Code.
We were appointed as auditors of the Group for the year ended 31 December 2017. When we are engaged to audit consolidated financial statements for the first
time, including where the consolidated financial statements for the prior period were audited by another firm of auditors, we will not have previously obtained
audit evidence in relation to the opening balances. Therefore, we are required by International Standards on Auditing to perform certain procedures on the
opening balances in order to obtain sufficient appropriate audit evidence that the opening balances do not contain misstatements that materially affect the
current period’s consolidated financial statements.
To fulfil this responsibility, we reviewed the working papers of the former auditors, to help familiarise ourselves with the controls on which they relied for the
purposes of issuing their opinion, and to understand the evidence they obtained over key judgements.
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial statements. In particular,
we considered where the Directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions
and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls,
including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole,
taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.
Key audit matter How our audit addressed the Key audit matter
Valuation of investment properties Our audit procedures in relation to the valuation of investment
As mentioned in note 5 to the consolidated financial statements, the Group properties included:
has investment properties recorded under the fair value model and the fair –– Obtaining and reviewing the latest valuation reports prepared by the
value gains or losses are recorded in the consolidated statement of profit external valuers, and assessing their independence and competencies;
or loss and other comprehensive income. –– Verifying on test basis the key assumptions (i.e. useful life of the asset
and comparable market rate), valuation methodologies adopted,
The Group’s investment properties are based in the State of Qatar. The and the appropriateness of the valuation outcomes;
carrying value of investment properties in the consolidated statement –– Using our own property valuation experts to independently review
of financial position is QAR 6,892,214,727 at 31 December 2017. the appropriateness of the valuation methodologies adopted and the
comparable evidence for all valuation assumptions to ensure alignment
The valuations of properties were carried out by independent third party to the real estate market;
valuers with experience of the particular markets in which the properties –– Comparing useful life of the assets, depreciated build rates and the land
are held. rates against external market data, where available and re-calculating
the external valuations using our own valuation models; and
The fair value of the investment properties of the Group was determined –– Evaluating the sensitivity analysis performed by management and the
as follows: disclosures relating to the valuation.
–– Lands: Comparable market approach;
–– Income generating assets: Depreciated replacement cost method.
–– Properties under development: Cost method where fair value cannot
be reliably measured
In determining the property’s value, the valuers have taken into account
property specific information, such as useful life and comparable market rate
to arrive at the final valuation.
The total assets of the Group amount to QAR 8,669,826,481 out of which the
investment property account forms 79% of the total assets. The reported
results and financial position of the Group could be materially affected if the
estimates and judgements change.
Business combination – loss of control on subsidiaries Our audit work included the following:
As mentioned in note 31 to the consolidated financial statements, the Group –– Obtaining and reviewing the latest audited financial statements of
has lost control over two of its subsidiaries as a result of changing shareholders the entities;
agreements, so that the Group will only be able to exercise joint control over –– Reviewing and discussing the changes to shareholders agreements with
these two entities. management to assess the change of control status and reasonableness
of derecognition of subsidiary companies and recognition of them as
The accounting for this change in control status is governed by IFRS 3 joint ventures;
‘Business Combinations’ and IFRS 11 ‘Joint arrangements’, requirements of –– We obtained the external experts valuation model and discussed the
which can be complex and require management to exercise judgement. critical assumptions used with management. The discussion focussed
on the growth rates used to estimate future cash flows and the discount
The most significant area of judgment is the determination of fair value of rates used;
net assets disposed, which involves the determination of identifiable assets –– Our internal valuation experts reviewed the appropriateness of the model
and liabilities disposed and use of assumptions to measure their fair values. and the inputs selected to calculate the fair value. They independently
Management engaged external experts to assist with the determination recalculated the discount rates applied to the cash flows in the model
of the fair value. based on their assessment of the Group’s specific financing and capital costs;
–– We tested the inputs used in the determination of the assumptions for
The fair value of the net assets of these subsidiaries were determined using the calculation of the fair value to third-party sources, where available,
the income approach by adopting a discounted cash flow model, which including using external data from analysts’ reports;
resulted in recognition of QAR 22,191,741 as gain on disposal of subsidiaries –– We tested the mathematical accuracy of the model; and
in the consolidated statement of profit or loss and other comprehensive –– We also tested the de-consolidation entries and adequacy of disclosures
income for the year ended 31 December 2017. included in the consolidated financial statements of the Group.
Due to the value of the net assets of the subsidiaries and the level of
judgement and estimate involved in arriving at its fair value, the accounting
for business combinations has been identified as a key audit area of focus.
42 Aamal Company Q.P.S.C. Annual Report 2017
Other information
The directors are responsible for the other information. The other information comprises Board of Directors’ Report (but does not include the consolidated financial
statements and our auditor’s report thereon), which we obtained prior to the date of this auditor’s report, and the complete annual report, which is expected
to be made available to us after that date.
Our opinion on the consolidated financial statements does not cover the other information and we do not and will not express any form of assurance
conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider
whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears
to be materially misstated.
If, based on the work we have performed, on the other information that we obtained prior to the date of this auditor’s report, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the complete annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those
charged with governance.
Responsibilities of management and those charged with governance for the consolidated financial statements
The management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS and with the
requirements of the Qatar Commercial Companies Law number 11 of 2015, and for such internal control as management determines is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or
to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
–– Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
–– 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 Group’s internal control.
–– Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
–– Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
–– Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
–– Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion
on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our audit.
Aamal Company Q.P.S.C. Annual Report 2017 Financials
43
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence,
and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable,
related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated
financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
Other matters
The consolidated financial statements of the Group for the year ended 31 December 2016 were audited by another firm of auditors who expressed an unqualified
audit opinion in their report dated 15 March 2017.
Mohamed Elmoataz
Auditor’s registration number 281
Doha, State of Qatar
28 February 2018
44 Aamal Company Q.P.S.C. Annual Report 2017
Assets
Non-current assets
Retention and other non-current assets 3 – 160,545,562
Investments accounted for using the equity method 4 336,063,352 19,021,908
Investment properties 5 6,892,214,727 6,899,679,999
Property, plant and equipment 6 330,309,035 599,745,480
Total non-current assets 7,558,587,114 7,678,992,949
Current assets
Cash and bank balances 7 349,747,554 554,941,666
Trade and other receivables 8 479,824,138 1,386,376,942
Amounts due from related parties 9 134,777,767 61,506,302
Inventories 10 146,889,908 333,048,849
Total current assets 1,111,239,367 2,335,873,759
Total assets 8,669,826,481 10,014,866,708
Equity and liabilities
Equity
Share capital 11 6,300,000,000 6,300,000,000
Legal reserve 12 592,264,928 542,173,250
Treasury shares (739,279) (2,075,865)
Retained earnings 1,115,338,115 1,055,035,931
Equity attributable to equity holders of the parent 8,006,863,764 7,895,133,316
Non-controlling interests 39,680,909 420,008,282
Total equity 8,046,544,673 8,315,141,598
Liabilities
Non-current liabilities
Borrowings 13 5,491,116 130,827,739
Employees’ end of service benefits 14 25,259,237 31,502,689
Total non-current liabilities 30,750,353 162,330,428
Current liabilities
Bank overdrafts 7 – 1,458,876
Accounts payable and accruals 15 350,676,747 895,795,875
Amounts due to related parties 16 13,622,338 19,191,961
Borrowings 13 228,232,370 620,947,970
Total current liabilities 592,531,455 1,537,394,682
Total liabilities 623,281,808 1,699,725,110
Total equity and liabilities 8,669,826,481 10,014,866,708
The notes on pages 48 to 77 are an integral part of these consolidated financial statements.
The consolidated financial statements on pages 44 to 77 were authorised for issue by the Board of Directors on 28 February 2018 and were signed on its behalf by:
Sheikh Faisal Bin Qassim Al Thani Sheikh Mohamed Bin Faisal Al Thani Mohammad Ramahi
Chairman Vice Chairman and Managing Director Chief Financial Officer
Aamal Company Q.P.S.C. Annual Report 2017 Financials
45
The notes on pages 48 to 77 are an integral part of these consolidated financial statements.
46 Aamal Company Q.P.S.C. Annual Report 2017
Balance at 1 January 2017 6,300,000,000 542,173,250 (2,075,865) 1,055,035,931 7,895,133,316 420,008,282 8,315,141,598
Profit for the year – – – 500,916,782 500,916,782 22,147,587 523,064,369
Other comprehensive income – – – – – – –
Total comprehensive income
for the year – – – 500,916,782 500,916,782 22,147,587 523,064,369
Transfer to legal reserve – 50,091,678 – (50,091,678) – – –
Contribution to social and sports
activities fund (Note 28) – – – (12,522,920) (12,522,920) – (12,522,920)
Transactions with owners in their
capacity as owners
Dividends paid – – – (378,000,000) (378,000,000) – (378,000,000)
Disposals of subsidiaries (Note 31) – – – – – (402,474,960) (402,474,960)
Reissue of treasury shares – – 1,336,586 – 1,336,586 – 1,336,586
– – 1,336,586 (378,000,000) (376,663,414) (402,474,960) (779,138,374)
Balance at 31 December 2017 6,300,000,000 592,264,928 (739,279) 1,115,338,115 8,006,863,764 39,680,909 8,046,544,673
Balance at 1 January 2016 6,300,000,000 495,946,222 (2,075,865) 655,528,295 7,449,398,652 275,219,843 7,724,618,495
Profit for the year – – – 462,270,283 462,270,283 97,964,342 560,234,625
Other comprehensive income – – – – – – –
Total comprehensive income
for the year – – – 462,270,283 462,270,283 97,964,342 560,234,625
Transfer to legal reserve – 46,227,028 – (46,227,028) – – –
Contribution to social and sports
activities fund (Note 28) – – – (7,673,412) (7,673,412) – (7,673,412)
Transactions with owners in their
capacity as owners
Business acquisition – – – (13,363,061) (13,363,061) – (13,363,061)
Recognition of subsidiaries with
non-controlling interest – – – – – 50,274,951 50,274,951
Recognition of non-controlling
interest without a change
in control – – – 4,500,854 4,500,854 (4,500,854) –
Contribution from
non-controlling interest – – – – – 1,050,000 1,050,000
– – – (8,862,207) (8,862,207) 46,824,097 37,961,890
Balance at 31 December 2016 6,300,000,000 542,173,250 (2,075,865) 1,055,035,931 7,895,133,316 420,008,282 8,315,141,598
The notes on pages 48 to 77 are an integral part of these consolidated financial statements.
Aamal Company Q.P.S.C. Annual Report 2017 Financials
47
Operating activities
Profit for the year 523,064,369 560,234,625
Adjustments for:
Net fair value gains on investment properties 5 – (866,688)
Depreciation 6 36,699,944 61,778,293
Provision for employees’ end of service benefits 14 5,002,724 6,778,132
Allowance for impairment of trade accounts receivable 8 13,768,958 6,234,841
Gain on disposal of property, plant and equipment (1,591,661) (324,406)
Provision for slow moving inventories 708,944 200,562
Interest income (3,018,453) (3,372,590)
Finance costs 22 18,355,976 27,967,699
Gain on loss of control of subsidiaries 31 (22,191,741) –
Share of profit of equity-accounted investees 4 (102,025,210) (60,189,128)
Operating profit before working capital changes: 468,773,850 598,441,340
– Inventories (111,603,999) 36,779,174
– Trade and other receivables 106,201,698 (23,135,483)
– Accounts payable and accruals (14,184,818) 52,113,357
– Net movement in amounts due from and due to related parties (39,766,941) (403,297,689)
Cash flows from operations 409,419,790 260,900,699
Finance costs paid 22 (18,355,976) (27,967,699)
End of service benefits paid 14 (2,949,060) (4,136,683)
Net cash generated from operating activities 388,114,754 228,796,317
Investing activities
Interest income received 19 3,018,453 3,372,590
Proceeds from disposal of property, plant and equipment 2,563,833 1,349,491
Dividends received from equity accounted investees 4 129,597,230 6,696,591
Cash surrendered on deconsolidation of subsidiaries 31 (91,898,938) –
Acquisition of subsidiaries, net of cash acquired – (20,235,323)
Additions to investment properties 5 (51,169,919) (66,481,204)
Additions to property, plant and equipment 6 (55,302,724) (61,510,085)
Net cash used in investing activities (63,192,065) (136,807,940)
Financing activities
Change in restricted deposits 7 (2,920,000) –
Repayments of borrowings (151,994,511) (180,464,160)
Dividends paid (378,000,000) –
Reissue of treasury shares 1,336,586 –
Contributions from non-controlling interests – 1,050,000
Net cash used in financing activities (531,577,925) (179,414,160)
Net decrease in cash and cash equivalents (206,655,236) (87,425,783)
Cash and cash equivalents at beginning of year 553,482,790 640,908,573
Cash and cash equivalents at end of year 7 346,827,554 553,482,790
The notes on pages 48 to 77 are an integral part of these consolidated financial statements.
48 Aamal Company Q.P.S.C. Annual Report 2017
The principal business activities of the Company and its subsidiaries (collectively the ‘Group’) are disclosed in note 2.2.4 of the financial statements.
The ultimate parent and controlling shareholder of the Company is Al Faisal Holding Company W.L.L..
Qatar Companies Law No. 11 of 2015 (Companies Law) which is applicable to the Group has come into effect from 16 June 2015. The Ministry of Economy and
Commerce (MOEC) had extended the transitional period determined for complying with the Companies Law till August 2018. The Company has converted its
branches to Limited Liability Company to comply with the Companies Law (note 2). However, the Group is still in process of amending its Articles of Association.
The consolidated financial statements were authorised for issue by the representatives of the Board of Directors of Aamal Company Q.P.S.C. on 28 February 2018.
The consolidated financial statements have been prepared under the historical cost convention, except for investment properties which have been measured at
fair value.
The consolidated financial statements have been presented in Qatari Riyals (QAR), which is the Company’s functional and presentation currency and have been
rounded to the nearest Qatari Riyal.
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise
its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions
and estimates are significant to consolidated financial statements are disclosed in note 34.
2.1.2. New standards and interpretations are effective for annual periods beginning after 31 December 2017 and not yet adopted by the Group
Certain new accounting standards and interpretations have been published that are not mandatory for 31 December 2017 reporting periods and have not been
early adopted by the Group. The Group’s assessment of the impact of these new standards and interpretations is set out below:
–– IFRS 9, ‘Financial instruments’ (Annual periods beginning on or after 1 January 2018)
Nature of change
IFRS 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a
new impairment model for financial assets.
Impact
The Group has reviewed its financial assets and liabilities and is expecting the following impact from the adoption of the new standard on 1 January 2018:
Trade and other receivables, amounts due from related parties and cash at banks are debt instruments currently classified into the loans and receivables category
and measured at amortised cost under IAS 39. The Group assessed that they meet the conditions for classification at amortised cost (AC) under IFRS 9 since they
are cash flows solely payments of principal and interest (SPPI) and the Group’s business model is to hold and collect the debt instrument.
Cash and cash equivalents definition as per IAS 7 remains unchanged with the application of IFRS 9, short-term investments and time deposits will continue to be
presented under cash and cash equivalents, being highly liquid investments that are readily convertible to known amounts of cash and which are subject to an
insignificant risk of changes in value.
Aamal Company Q.P.S.C. Annual Report 2017 Financials
49
The new impairment model requires the recognition of impairment provisions based on expected credit losses (ECL) rather than only incurred credit losses as is
the case under IAS 39. It applies to financial assets classified at amortised cost, debt instruments measured at FVOCI, contract assets under IFRS 15 Revenue from
Contracts with Customers, lease receivables, loan commitments and certain financial guarantee contracts. Based on the assessments undertaken to date, the
Group expects an increase of QAR 9,952 thousands in the allowance for receivables with a corresponding decrease in the retained earnings as of 1 January 2018.
The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the
Group’s disclosures about its financial instruments particularly in the year of the adoption of the new standard.
–– IFRS 15, ‘Revenue from contracts with customers’ (Annual periods beginning on or after 1 January 2018).
Nature of change
The IASB has issued a new standard for the recognition of revenue. This will replace IAS 18 which covers contracts for goods and services and IAS 11 which covers
construction contracts.
The new standard is based on the principle that revenue is recognised when control of goods or service transfers to a customer.
The standard permits either a full retrospective or a modified retrospective approach for the adoption.
Impact
Management has assessed the effects of applying the new standard on the Group’s financial statements and has identified that the recognition and measurement
of revenue for all the current ongoing contracts under the IFRS 15 ‘five-step model’ will not change as currently recognised under IAS 18. Based on the assessment
undertaken to date, the Group expects an immaterial impact in the retained earnings as of 1 January 2018.
The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the
Group’s disclosures about its financial instruments particularly in the year of the adoption of the new standard.
Nature of change
IFRS 16 was issued in January 2016. It will result in almost all leases being recognised on the balance sheet, as the distinction between operating and finance leases
is removed. Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The only exceptions are
short‑term and low-value leases.
Impact
The standard will affect primarily the accounting for the Group’s operating leases as a lessee. As at the reporting date, the Group has non-cancellable operating
lease commitments of QAR 13,969 thousands (see Note 24).
However, the Group has not yet assessed what other adjustments, if any, are necessary for example because of the change in the definition of the lease term and
the different treatment of variable lease payments and of extension and termination options. It is therefore not yet possible to estimate the amount of right-of-use
assets and lease liabilities that will have to be recognised on adoption of the new standard and how this may affect the Group’s profit or loss and classification of
cash flows going forward.
The Group intends to apply the simplified transition approach and will not restate comparative amounts for the year prior to first adoption.
50 Aamal Company Q.P.S.C. Annual Report 2017
(a) Subsidiaries
Subsidiaries are all entities (including structured entities) over which the group has control. The group controls an entity when the group is exposed to, or has
rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the group. They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for business combinations by the group.
The consideration transferred for the acquisition of a subsidiary is the fair value of the assets transferred, the liabilities incurred to the former owners of the acquiree
and the equity interests issued by the group. The consideration transferred includes the fair value of any asset or liability resulting from a contingent consideration
arrangement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at
the acquisition date. The group recognises any non-controlling interest in the acquiree on an acquisition-by-acquisition basis, either at fair value or at the
non‑controlling interest’s proportionate share of the recognised amounts of acquiree’s identifiable net assets.
If the business combination is achieved in stages, the carrying value of the acquirer’s previously held equity interest in the acquiree is re-measured to fair value at
the acquisition date; any gains or losses arising from such re-measurement are recognised in the consolidated statement of profit or loss and other
comprehensive income.
Any contingent consideration to be transferred by the group is recognised at fair value at the acquisition date. Subsequent changes to the fair value of the
contingent consideration that is deemed to be an asset or liability is recognised in accordance with IAS 39 either in profit or loss or as a change to other
comprehensive income.
Contingent consideration that is classified as equity is not re-measured, and its subsequent settlement is accounted for within equity.
Goodwill arises on the acquisition of subsidiaries and represents the excess of the consideration transferred, the amount of any non-controlling interest in the
acquiree and the acquisition date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired. If the total of
consideration transferred, non-controlling interest recognised and previously held interest measured at fair value is less than the fair value of the net assets of the
subsidiary acquired, in the case of a bargain purchase, the difference is recognised directly in the profit or loss.
For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the CGUs or group of CGUs that is expected to benefit
from the synergies of the combination. Goodwill impairment testing is undertaken annually. Any impairment is recognised immediately as an expense and is not
subsequently reversed.
Intercompany transactions, balances and unrealised gains on transactions between group companies are eliminated. Unrealised losses are also eliminated unless
the transaction provides evidence of an impairment of the transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure
consistency with the policies adopted by the group.
Non-controlling interests in the results and equity of subsidiaries are shown separately in the consolidated statements of profit or loss and other comprehensive
income, changes in equity and financial position respectively.
2.2.2. Associates
Associates are all entities over which the group has significant influence but not control or joint control. This is generally the case where the group holds between
20% and 50% of the voting rights. Investments in associates are accounted for using the equity method of accounting. Under the equity method, the investment
is initially recognised at cost, and the carrying amount is increased or decreased to recognise the investor’s share of the profit or loss of the investee after the date
of acquisition.
If the ownership interest in an associate is reduced but significant influence is retained, only a proportionate share of the amounts previously recognised in other
comprehensive income is reclassified to profit or loss where appropriate.
The group’s share of post-acquisition profit or loss is recognised in the consolidated statement of profit or loss and other comprehensive income, and its share of
post-acquisition movements in other comprehensive income is recognised in other comprehensive income with a corresponding adjustment to the carrying
amount of the investment.
When the group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the group does not
recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
Profits and losses resulting from upstream and downstream transactions between the group and its associates are recognised in the group’s financial statements
only to the extent of unrelated investor’s interests in the associates. Unrealised losses are eliminated unless the transaction provides evidence of an impairment of
the asset transferred. Accounting policies of associates have been changed where necessary to ensure consistency with the policies adopted by the group.
The group determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired. If this is the case, the group
calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and charges the amount to the
consolidated statement of profit or loss and other comprehensive income.
Dilution gains and losses arising in investments in associates are recognised in the consolidated statement of profit or loss and other comprehensive income.
A joint venture is an arrangement in which the Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather than rights to
its assets and obligations for its liabilities. Interests in joint ventures are accounted for using the equity method. Under the equity method, the interests in joint
ventures are initially recognised at cost and adjusted thereafter to recognise the group’s share of the post-acquisition profits or losses and movements in other
comprehensive income.
When the Group’s share of losses in a joint venture equals to or exceeds its interests in the joint ventures, the Group does not recognise further losses, unless it has
incurred obligations or made payments on behalf of the joint ventures.
Unrealised gains on transactions between the Group and its joint ventures are eliminated to the extent of the Group’s interest in the joint ventures. Unrealised
losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of the joint ventures have been
changed where necessary to ensure consistency with the policies adopted by the Group.
The reporting dates of the equity-accounted investees and the Group are identical and the equity-accounted investees’ accounting policies conform to those used
by the Group for like transactions and events in similar circumstances.
52 Aamal Company Q.P.S.C. Annual Report 2017
City Center Company L.L.C.* Qatar Leasing the facilities of a retail outlet complex in City Center Doha. 100% 100%
Aamal Real Estate L.L.C.* Qatar Residential and commercial real estate investment and property rental. 100% 100%
Aamal Readymix L.L.C.* Qatar Production and sale of readymix concrete. 100% 100%
Ebn Sina Medical L.L.C.* Qatar Wholesale and retail distribution of pharmaceuticals and general 100% 100%
consumable products.
Aamal Medical L.L.C.* Qatar Wholesale distribution of medical equipment. 100% 100%
Aamal Trading and Distribution Qatar Sale of tyres, lubricants, batteries and home appliances. 100% 100%
Company L.L.C.*
Aamal Services L.L.C.* Qatar Providing facilities management and cleaning services. 100% 100%
Aamal Travel and Tourism L.L.C.* Qatar Operating a travel agency. 100% 100%
Foot Care Center L.L.C.* Qatar Sale of footwear, clinical activities and general commercial trading products. 100% 100%
Ebn Sina Health Care Pharmacy Qatar Sale of pharmaceuticals, baby care products, medicine and general 100% 100%
Solutions L.L.C.* consumable products.
Aamal Cement Industries W.L.L. Qatar Development and management of factories and the production of curb stone, 99% 99%
interlock slabs and cement bricks.
IMO Qatar Company W.L.L. Qatar Construction and repair of power plant, establishment and management of 100% 100%
industrial enterprises and acting as a representative for the international
companies.
Ci-San Trading W.L.L. Qatar Holding company of Gulf Rocks. 50% 50%
The Group controls Ci-San Trading W.L.L. by virtue of a shareholders’ agreement.
Gulf Rocks Company W.L.L. Qatar Retail distribution of aggregates 74.5% 74.5%
Innovative Lighting W.L.L.** Qatar Trading of Light Emitting Diode (LED) Lamps and other lighting products. 70% 70%
Aamal Maritime Transportation W.L.L. Qatar Purchasing and leasing of ships for transportation of goods 74.7% 74.7%
Al Farazdaq Company W.L.L. Qatar Trading of office supplies and providing printing and laminating services. 65% 65%
Aamal Optical Supplies W.L.L.** Qatar Trading of optical supplies 51% 51%
Family Entertainment Center Qatar Providing family entertainment park facilities in City Center Doha Mall. 100% 100%
Company W.L.L.
Winter Wonder Land W.L.L. Qatar Providing entertainment facilities in City Center Doha Mall. 100% 100%
Ecco Gulf Company W.L.L. Qatar Offers professional and business process outsourcing and call centre services. 51% 51%
Johnson Controls Qatar W.L.L.** Qatar Provision of facilities management services, energy services, 51% 51%
and building maintenance and cleaning services to corporate clients
Aamal for Industrial Projects L.L.C.* Qatar Industrial investments 100% 100%
Legend Trading and Distribution Qatar Trading of automobile products 100% 100%
W.L.L.
Aamal for Car Maintenance W.L.L. Qatar Trading of car spare parts 100% –
* Company was previously operated as a Branch. During the year, the Branch was converted to a Limited Liability Company under Qatar Commercial Companies Law No. 11 of 2015.
** These entities are under liquidation.
Aamal Company Q.P.S.C. Annual Report 2017 Financials
53
Senyar Industries Qatar Holding W.L.L. Qatar Owning of patents, businesses and subletting them and provision of 50% 50%
(Joint Venture)*** investment portfolio management for its subsidiaries and associates.
Doha Cables Qatar W.L.L. Qatar Maintenance and manufacture of electric cables, equipment and tools. 47.3% 47.3%
(subsidiary of Senyar industries
Qatar Holding W.L.L.)***
El Sewedy Cables Qatar W.L.L. Qatar Trading in electro-mechanical equipment and providing related services. 38.3% 38.3%
(subsidiary of Senyar industries
Qatar Holding W.L.L.)***
Frijns Structural Steel Middle East Qatar Steel fabrications. 20% 20%
W.L.L. (Associate)
Aamal ECE L.L.C. (Joint Venture) Qatar Property management. 51% 51%
Advanced Pipes and Casts Industries Qatar Manufacturing of wide cement and glass reinforced pipes systems for 50% 50%
W.L.L. (Joint Venture)*** infrastructure and pipeline projects.
Investment properties are measured initially at cost, including transaction costs and borrowing costs that are directly attributable to construction of the asset. The
carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met; and
excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, investment properties are stated at fair value, which reflects
market conditions at the reporting date. Gains or losses arising from changes in the fair values of investment properties are included in the consolidated statement
of profit or loss and other comprehensive income in the year in which they arise.
Investment properties are de-recognised when either they have been disposed off or when the investment property is permanently withdrawn from use and no
future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognised in the consolidated
statement of profit or loss and other comprehensive income in the year of retirement or disposal.
Property under construction is dealt with under IAS 40 and recorded at cost less accumulated impairment losses until either its fair value becomes reliably
determinable or construction is completed (whichever is earlier). At that time, it is reclassified as investment property and a fair value adjustment is recognised in
the consolidated statement of profit or loss and other comprehensive income.
Transfers are made to or from investment property only when there is a change in use. For a transfer from investment property to owner occupied property, the
deemed cost for subsequent accounting is the fair value at the date of change in use. If owner occupied property becomes an investment property, the difference
between the carrying value and the fair value at the date of transfer is recognised as a revaluation reserve in the equity and is released to the consolidated
statement of profit or loss and other comprehensive income upon disposal of such property.
54 Aamal Company Q.P.S.C. Annual Report 2017
Depreciation is provided on a straight-line basis on all property, plant and equipment. The rates of depreciation are based upon the following estimated useful lives:
Buildings 20 years
Leasehold improvements 2-8 years or over the period of lease term, whichever is shorter
Truck mixers and motor vehicles 4-15 years
Plant and machinery 8-25 years
Motor vehicles 4-5 years
Furniture, fixtures and office equipment 3-5 years
Computers and related software 3-5 years
Vessel 20 years
The carrying amounts are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. If any such
indication exists and where the carrying values exceed the estimated recoverable amount, the assets are written down to their recoverable amount, being the
higher of their fair value less costs to sell and their value in use.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain
or loss arising on derecognition of the asset is included in the consolidated statement of profit or loss and other comprehensive income in the year the asset
is derecognised.
The asset’s residual values, useful lives and method of depreciation are reviewed, and adjusted if appropriate, at each financial year end.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the consolidated statement of profit or
loss and other comprehensive income.
Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method, less provision
for impairment.
2.8. Inventories
Raw materials, work in progress, finished goods and goods for resale are stated at the lower of cost and net realisable value. Cost comprises direct materials, direct
labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs are
assigned to individual items of inventory on the basis of weighted average costs. Costs of purchased inventory are determined after deducting rebates and
discounts. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs
necessary to make the sale.
Aamal Company Q.P.S.C. Annual Report 2017 Financials
55
Where any group company purchases the company’s equity instruments, for example as the result of a share buy-back or a share-based payment plan, the
consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the owners of the Group as
treasury shares until the shares are cancelled or reissued. Where such ordinary shares are subsequently reissued, any consideration received, net of any directly
attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the shareholders of the Group.
2.11. Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between
the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest
method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the
facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the
facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates.
Borrowings are derecognised from the consolidated statement of financial position when the obligation specified in the contract is discharged, cancelled or
expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid,
including any non-cash assets transferred or liabilities assumed, is recognised in the statement of profit or loss and other comprehensive income as other income
or finance costs.
Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a creditor to extinguish all or part of the liability (debt for equity
swap), a gain or loss is recognised in the statement of profit or loss and other comprehensive income, which is measured as the difference between the carrying
amount of the financial liability and the fair value of the equity instruments issued.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the
reporting period.
Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.
2.15.1. Classification
The Group classifies its financial assets into ‘loans and receivables’ category.
The classification depends on the purpose for which the financial assets were acquired. Management determined the classification of its financial assets at
initial recognition.
2.15.2. Reclassification
The Group may choose to reclassify a non-derivative trading financial asset out of the held for trading category if the financial asset is no longer held for the
purpose of selling it in the near term. Financial assets other than loans and receivables are permitted to be reclassified out of the held for trading category only in
rare circumstances arising from a single event that is unusual and highly unlikely to recur in the near term. In addition, the Group may choose to reclassify financial
assets that would meet the definition of loans and receivables out of the held for trading or available-for-sale categories if the Group has the intention and ability
to hold these financial assets for the foreseeable future or until maturity at the date of reclassification.
Reclassifications are made at fair value as of the reclassification date. Fair value becomes the new cost or amortised cost as applicable, and no reversals of fair value
gains or losses recorded before reclassification date are subsequently made. Effective interest rates for financial assets reclassified to loans and receivables and
held-to-maturity categories are determined at the reclassification date. Further increases in estimates of cash flows adjust effective interest rates prospectively.
2.15.4. Measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction
costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are
expensed in the statement of profit or loss and other comprehensive income.
Loans and receivables are subsequently carried at amortised cost using the effective interest method.
Evidence of impairment may include indications that the debtors or a group of debtors is experiencing significant financial difficulty, default or delinquency in
interest or principal payments, the probability that they will enter bankruptcy or other financial reorganisation, and where observable data indicate that there is a
measurable decrease in the estimated future cash flows, such as changes in arrears or economic conditions that correlate with defaults.
For loans and receivables category, the amount of the loss is measured as the difference between the asset’s carrying amount and the present value of estimated
future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate. The carrying amount
of the asset is reduced and the amount of the loss is recognised in the consolidated statement of profit or loss and other comprehensive income.
If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment
was recognised (such as an improvement in the debtor’s credit rating), the reversal of the previously recognised impairment loss is recognised in the consolidated
statement of profit or loss and other comprehensive income.
Aamal Company Q.P.S.C. Annual Report 2017 Financials
57
2.16. Provisions
Provisions are recognised when: the Group has a present legal or constructive obligation as a result of past events; it is probable that an outflow of resources will
be required to settle the obligation; and the amount has been reliably estimated. Provisions are not recognised for future operating losses.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined by considering the class of obligations
as a whole. A provision is recognised even if the likelihood of an outflow with respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market
assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to passage of time is recognised as interest expense.
The liability recognised in the consolidated statement of financial position in respect of employees’ end of service indemnity is the present value of the defined
benefit obligation at the end of the reporting period. The defined benefit obligation is calculated annually by management using the projected unit credit
method. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of high-quality
corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the
related benefit obligation. Where there is no deep market in such bonds, the market rates on government bonds are used.
Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions (remeasurements) are charged or credited to equity in other
comprehensive income in the period in which they arise.
Past-service costs are recognised immediately in the consolidated statement of profit or loss and other comprehensive income.
2.18. Revenue
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is
measured at the fair value of the consideration received excluding discounts, rebates and duty. The following specific recognition criteria must also be met before
revenue is recognised:
(d) Commission
Commission is accounted for on an accrual basis, when the right to receive the income is established.
(f ) Interest income
Interest income is recognised as the interest accrues using the effective interest rate method.
58 Aamal Company Q.P.S.C. Annual Report 2017
The principal or the most advantageous market must be accessible by the group.
The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that
market participants act in their economic best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest
and best use or by selling it to another market participant that would use the asset in its highest and best use.
The group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the
use of relevant observable inputs and minimising the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial statements are categorised within the fair value hierarchy,
described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:
–– Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities
–– Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
–– Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognised in the consolidated financial statements on a recurring basis, the group determines whether transfers have occurred
between Levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the
end of each reporting period.
The group measures its investment properties at fair value at each reporting date.
The group’s management determines the policies and procedures for valuation of investment properties. External valuers are involved for the valuation of
investment properties. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. The
management discusses and reviews, the group’s external valuers, valuation techniques and assumptions used for each property (note 5).
Retention – 56,813,163
Goodwill – 102,724,852
Other non-current assets – 1,007,547
– 160,545,562
The balances were derecognised due to loss of control on subsidiaries (Note 31).
Aamal ECE L.L.C. Qatar 51% 51% Joint Venture 5,613,301 6,450,232
Frijns Structural Steel Middle East W.L.L. Qatar 20% 20% Associate 14,864,935 12,571,676
Advanced Pipes and Casts Industries W.L.L. (see Note 31) Qatar 50% 50% Joint Venture 5,276,848 –
Senyar Industries Qatar Holding W.L.L. (see Note 31) Qatar 50% 50% Joint Venture 310,308,268 –
336,063,352 19,021,908
Aamal Company Q.P.S.C. Annual Report 2017 Financials
59
5. Investment properties
Details of the Group’s investment properties and information about the fair value hierarchy as at 31 December are as follows:
2017 2016
All investment properties are located in the State of Qatar and are measured at level 3 fair value (using significant unobservable inputs).
Aamal Company Q.P.S.C. Annual Report 2017 Financials
61
Description of valuation techniques used by the Group and key inputs to valuation on all of the investment properties are as follows:
Types of properties Valuation techniques Estimated value
Sensitivity analysis:
At 31 December 2017, if the price per square foot for investment properties (valued using market approach) had been higher/lower by 1% with all other variables
held constant, the calculated fair valuation gains (losses) on investment properties for the year would have been QAR 68,922 thousands lower/higher (higher/
lower) mainly as a result of higher/lower fair value gain (loss) on investment properties.
Minimum lease receivables under non-cancellable operating leases of investment properties not recognised in the financial statements are as follows:
2017 2016
Cost:
At 1 January 2017 227,097,527 60,651,175 140,586,880 411,998,358 32,086,470 19,989,696 73,507,640 21,918,335 987,836,081
Additions – 2,926,382 4,632,653 8,506,483 1,064,670 9,601,307 – 28,571,229 55,302,724
Disposals of subsidiaries (227,097,527) (1,762,523) (14,263,532) (277,416,556) (6,436,203) (2,010,851) – (6,349,517) (535,336,709)
Disposals/write-off – – (6,817,192) (3,878,127) (65,518) (1,044,796) – – (11,805,633)
Transfer from investment
properties (Note 5) 97,387,483 – – – – – – – 97,387,483
Transfer from capital work
in progress (Note 5) – – – 359,128 – – – (39,111,420) (38,752,292)
At 31 December 2017 97,387,483 61,815,034 124,138,809 139,569,286 26,649,419 26,535,356 73,507,640 5,028,627 554,631,654
Accumulated depreciation:
At 1 January 2017 50,237,681 32,148,408 70,133,613 190,735,846 26,236,570 16,298,225 2,300,258 – 388,090,601
Charge for the year 2,673,678 4,836,373 8,826,242 14,235,116 1,484,275 2,575,340 2,068,920 – 36,699,944
Disposals of subsidiaries (52,911,359) (631,155) (7,051,094) (123,899,822) (3,645,224) (1,495,811) – – (189,634,465)
Disposals/write-off – – (6,432,993) (3,302,423) (64,710) (1,033,335) – – (10,833,461)
At 31 December 2017 – 36,353,626 65,475,768 77,768,717 24,010,911 16,344,419 4,369,178 – 224,322,619
Net carrying amounts:
At 31 December 2017 97,387,483 25,461,408 58,663,041 61,800,569 2,638,508 10,190,937 69,138,462 5,028,627 330,309,035
Notes:
(i) Depreciation charge for the year amounting to QAR 26,801,233 (2016: QAR 52,194,800) is included in the direct costs and no amount has been capitalised under capital work in progress (2016: Nil).
(ii) The capital work in progress does not include capitalised borrowing in the current year (2016: Nil).
(iii) The buildings are constructed on a plot of land taken on a long term operating lease.
62 Aamal Company Q.P.S.C. Annual Report 2017
Cost:
At 1 January 2016 224,744,848 47,776,135 126,383,500 378,771,268 23,397,913 18,420,381 45,698,382 20,336,152 885,528,579
Additions 60,973 810,527 8,833,167 11,830,168 2,261,894 2,006,881 27,809,258 7,897,217 61,510,085
Acquired through
business combinations – 11,940,513 5,682,091 26,065,915 7,506,854 1,149,103 – – 52,344,476
Disposals/write-off – – (4,160,453) (4,668,993) (1,080,191) (1,586,669) – (50,753) (11,547,059)
Transfer from capital work
in progress 2,291,706 124,000 3,848,575 – – – – (6,264,281) –
At 31 December 2016 227,097,527 60,651,175 140,586,880 411,998,358 32,086,470 19,989,696 73,507,640 21,918,335 987,836,081
Accumulated depreciation:
At 1 January 2016 39,847,695 20,610,386 61,717,985 141,403,013 19,098,576 15,524,362 517,230 – 298,719,247
Charge for the year 10,389,986 4,426,948 9,294,629 32,127,850 2,321,482 1,434,370 1,783,028 – 61,778,293
Acquired through
business combination – 7,111,074 2,858,512 21,330,104 5,889,183 926,162 – – 38,115,035
Disposals/write-off – – (3,737,513) (4,125,121) (1,072,671) (1,586,669) – – (10,521,974)
At 31 December 2016 50,237,681 32,148,408 70,133,613 190,735,846 26,236,570 16,298,225 2,300,258 – 388,090,601
Net carrying amounts:
At 31 December 2016 176,859,846 28,502,767 70,453,267 221,262,512 5,849,900 3,691,471 71,207,382 21,918,335 599,745,480
At year-end, if the useful life increased/decreased by 5% against the current useful life with all other variables held constant, profit for the year would have been
lower by QAR 2,676,872 or higher by QAR 2,421,932 (2016: lower by QAR 4,207,776 or higher by QAR 3,807,036).
The short term bank deposits are made for varying periods between one day and three months, depending on the immediate cash requirements of the Group,
and earn interest at the respective short term deposit rates.
As at 31 December 2017, trade accounts receivable amounting to QAR 42,624,373 (2016: QAR 31,750,735) were impaired. Movements in the allowance for
impairment of trade accounts receivable were as follows:
2017 2016
Unimpaired receivables are expected, on the basis of past experience, to be fully recoverable. It is not the practice of the Group to obtain collateral over receivables.
An estimate of the collectible amount of trade receivables are made when collection of the full amount is no longer probable. For individually significant amounts,
this estimation is performed on an individual basis.
Amounts which are not individually significant, but which are past due, are assessed collectively based on the provisioning policy applied by the Group,
and a provision is applied according to the length of time past due, based on historical recovery rates.
At year-end, if the estimate used by management increased/decreased by 1% with all other variables held constant, profit for the year would have been lower
by QAR 3,925,018 or higher by QAR 3,624,974 (2016: lower by QAR 3,818,992 or higher by QAR 3,000,740).
Notes:
(i) Transactions with related parties are carried out through open account and Directors do not consider any receivables to be past due or impaired.
(ii) Other related party transactions are disclosed in Note 26.
10. Inventories
2017 2016
Movements in the provision for obsolete and slow moving inventories were as follows:
2017 2016
At year-end, if the estimate used by management increased/decreased by 1% with all other variables held constant, profit for the year would have been lower by
QAR 1,359,229 or higher by QAR 926,728 (2016: lower by QAR 3,176,651 or higher by QAR 1,730,723).
All shares are of same class and carry equal voting rights.
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65
13. Borrowings
Notes Maturity 2017 2016
The deferred financing costs consist of arrangement fees. The movements in the deferred financing costs were as follows:
2017 2016
Notes:
(i) On 31 March 2017, Loan 1, Loan 2 and Bills payable were derecognised due to loss of control on subsidiaries (Note 31).
(ii) Loan 3 is a secured bridge loan obtained to settle an existing loan and working capital requirements of the Group. The loan carries interest at commercial rates and a single repayment at the end
of the tenor along with the interest is to be made.
(iii) Loan 4 represents a loan facility obtained in two separate tranches amounting to QAR 309,583,750 (USD 85 million) for the purpose of refurbishment and construction of facilities in one of the
investment properties. The loan consists of QAR 100,168,750 (USD 27.5 million) from tranche A and QAR 209,415,000 (USD 57.5 million) from tranche B. Tranche A has been fully paid during the year
and the tranche B is repayable in 12 equal quarterly instalments, commencing from July 2014. The loan carries interest at commercial rates and the loan was fully settled in 2017.
(iv) Loan 5 represents a secured loan which is payable by 50 equal monthly instalments of QAR 426,000 with a last instalment of QAR 324,036 with effect from 01 October 2013. The loan carries interest
at commercial rates and the loan was fully settled in 2017.
(v) Loan 6 represents a secured loan which carries interest at commercial market rates and is payable by 59 equal instalments of QAR 160,000 with a last instalment of QAR 128,000 with effect from
31 December 2012 and the loan was fully settled in 2017.
(vi) Loan 7 represents a secured loan obtained on 04 May 2014, to finance the purchase of heavy equipment and machines. The loan is payable by 18 quarterly instalments with effect from 26 February
2015, previously QAR 1,672,058 until June 2017 and revised to QAR 1,940,241 until the last instalment in April 2019. The loan carries interest at commercial market rates.
(vii) Loan 8 represents a secured loan obtained on 12 July 2016, to finance the purchase of vehicles, plant and machinery. The loan is payable by 51 monthly instalments of QAR 46,355 in the first month
with effect from 1 June 2017 and QAR 39,284 in the subsequent months. The loan carries interest at commercial market rates.
66 Aamal Company Q.P.S.C. Annual Report 2017
Borrowings – Borrowings –
Cash/overdraft due within one year due after one year Total
Note:
A joint venture manages the operations of City Centre Mall.
Other related party transactions are disclosed in Note 26.
17. Revenue
2017 2016
Profit for the year attributable to equity holders of the parent (QAR) 500,916,782 462,270,283
Weighted average number of shares outstanding during the year(i) 629,897,032 629,842,934
Basic and diluted earnings per share (QAR) 0.80 0.73
Notes:
(i) The weighted average number of shares for the purpose of calculating earnings per share has been calculated as follows:
24. Commitments
2017 2016
Estimated capital expenditure approved and contracted for at the year-end but not provided for:
Investment properties 166,680,958 225,312,488
Property, plant and equipment 2,731,156 52,565,455
169,412,114 277,877,943
Operating lease commitments, under non-cancellable lease agreements:
Payable within one year 9,678,559 3,122,296
Payable after one year but not more than five years 4,291,141 1,497,599
13,969,700 4,619,895
Notes:
(i) Letters of guarantee include performance, tender and bid bonds and payment guarantees given to suppliers and contractors by the Group in the ordinary course of business, which will mature
within twelve months from the reporting date.
(ii) Letters of credit are provided by lodging documents to the bank for purchase of trading goods from foreign suppliers, which will mature within three to six months from the date of the transaction.
The Group did not record any impairment of receivables relating to amounts due from related parties in either year. This assessment is undertaken each financial
year through examining the financial position of the related party and the market in which the related party operates.
27. Dividends
The shareholders of the Company approved at the Annual General Meeting held on 17 April 2017 a cash dividend of 6% of the share capital amounting to
QAR 378 million from the profit of 2016 (2016: Nil).
The Board of Directors proposed cash dividend of 6% of the share capital amounting to QAR 378 million for the year 2017 which will be submitted for formal
approval at the Annual General Assembly Meeting.
Property:
The segment involves leasing the facilities of retail outlet complex, real estate investments and property rental businesses.
Industrial manufacturing:
The segment involves manufacturing, wholesale and/or retail distribution of electric cables and tools, aggregates, ready-mix concrete and cement blocks and
provision of services in relation to industrial investment, repair and construction of power plants, trading of LED lighting products and management of
industrial enterprises.
Managed services:
The segment involves provision of housekeeping and cleaning services, entertainment and amusement services, call center services and acting as travel agents.
Parent company:
It provides corporate services to the subsidiaries of the Group.
For each of the strategic divisions, the Group’s managing director (the chief operating decision maker) reviews internal management reports on a regular basis.
The managing director monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and
performance assessment. Segment performance is evaluated based on the financial position and operating profit or loss of these segments. Transfer pricing
between operating segments are on arm’s length basis in a manner similar to transactions with third parties.
Aamal Company Q.P.S.C. Annual Report 2017 Financials
71
Operating segments:
The operating segment, after elimination of inter-company transactions, is presented as follows:
Trading and Industrial Managed Head
Property distribution manufacturing services Office Eliminations Total
Note:
(i) Inter-segment revenues are eliminated on consolidation.
72 Aamal Company Q.P.S.C. Annual Report 2017
At 31 December 2017
Current assets 199,652,050 541,324,525 198,558,926 96,845,486 178,842,791 (103,984,411)(i) 1,111,239,367
Non-current assets 7,008,221,806 11,500,594 528,469,579 10,765,319 115,339 (485,523)(i) 7,558,587,114
Total assets 7,207,873,856 552,825,119 727,028,505 107,610,805 178,958,130 (104,469,934) 8,669,826,481
Current liabilities 79,724,424 151,558,551 119,854,140 26,514,506 326,164,308 (111,284,474)(i) 592,531,455
Non-current liabilities 1,255,243 10,331,597 12,573,644 4,785,422 1,804,447 – 30,750,353
Total liabilities 80,979,667 161,890,148 132,427,784 31,299,928 327,968,755 (111,284,474) 623,281,808
Capital expenditure (ii) 84,743,902 3,320,699 15,131,107 3,167,639 109,296 – 106,472,643
At 31 December 2016
Current assets 201,012,411 619,623,548 1,412,615,381 98,901,490 123,009,621 (119,288,692)(i) 2,335,873,759
Non-current assets 6,926,964,284 13,420,596 729,165,084 11,419,604 164,189 (2,140,808)(i) 7,678,992,949
Total assets 7,127,976,695 633,044,144 2,141,780,465 110,321,094 123,173,810 (121,429,500) 10,014,866,708
Current liabilities 123,491,087 155,162,080 1,042,415,457 23,001,056 312,612,964 (119,287,962)(i) 1,537,394,682
Non-current liabilities 1,106,213 9,534,861 145,502,989 4,659,313 1,527,052 – 162,330,428
Total liabilities 124,597,300 164,696,941 1,187,918,446 27,660,369 314,140,016 (119,287,962) 1,699,725,110
Capital expenditure (ii) 69,903,815 1,477,703 50,956,147 5,552,844 100,780 – 127,991,289
Notes:
(i) Inter-segment balances are eliminated on consolidation.
(ii) Capital expenditures consist of additions to property, plant and equipment and investment properties.
The group ceases to consolidate the two subsidiaries referred to above because of a loss of control and classified them as joint ventures as agreements with other
shareholders provide joint controls to the Group. The retained interest in the entity is re-measured to its fair value with the change in carrying amount recognised
in profit or loss. This fair value becomes the initial carrying amount for the purposes of subsequently accounting for the retained interest as a joint venture.
In addition, any amounts previously recognised in other comprehensive income in respect of that entity are accounted for as if the group had directly disposed
of the related assets or liabilities.
The financial performance and cash flow information presented are for the three months ended 31 March 2017 and the year ended 31 December 2016.
31 March 31 December
2017 2016
(Reviewed) (Audited)
The profit of QAR 22,191,741 occurring from measuring the investment retained in the subsidiary is included in the consolidated statement of profit or loss and
other comprehensive income under ‘gain on loss of control of subsidiaries’.
The cash and bank balances net of bank overdrafts amounting to QAR 91,898,938 represents the cash surrendered on deconsolidation of subsidiaries.
The main risks arising from the Group’s financial instruments are market risk, credit risk and liquidity risk. The Board of Directors reviews and agrees policies for
managing each of these risks, which are summarised below.
The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s financial assets and liabilities with floating interest rates.
The following table demonstrates the sensitivity of the consolidated statement of profit or loss and other comprehensive income to reasonably possible changes
in interest rates by 25 basis points, with all other variables held constant. The sensitivity of the consolidated statement of profit or loss and other comprehensive
income is the effect of the assumed changes in interest rates for one year, based on the floating rate financial assets and financial liabilities held at 31 December.
The effect of decreases in interest rates is expected to be equal and opposite to the effect of the increases shown.
Effect
Changes in basis points on profit
2017
Floating interest rate instruments +25 b.p. (952,229)
2016
Floating interest rate instruments +25 b.p. (1,350,480)
Trade accounts payable and accrued expenses include amounts due in foreign currencies, mainly US Dollar, UAE Dirham, Great Britain Pound (GBP) and Euro,
of which the Group has a currency risk primarily on the balances payable in Euro and GBP.
The Group does not hedge its foreign currency exposure. As both Qatari Riyal and UAE Dirham are pegged to the US Dollar, balances in US Dollars and
UAE Dirhams are not considered to represent significant currency risk to the Group.
In the opinion of the management, the Group’s exposure to currency risk as at 31 December 2017 and 2016 is minimal as the foreign currency financial liabilities
denominated in Euro and GBP represent 4% (2016: 3%) of total liabilities. Hence, not considered to represent significant risk.
The Group sells its products and provides services to various parties. It is the Group’s policy that all customers who wish to obtain on credit terms are subject to
credit verification procedures to ensure credit worthiness. Each new customer is analysed individually for creditworthiness before the delivery of products or
services. Customers that fail to meet the creditworthiness may transact with the Group only on prepayment basis. Property rentals are mostly received in advance
or contracted with post-dated cheques. In addition, receivable balances are monitored on an ongoing basis and the purchase limits are established for each credit
customer, which are reviewed regularly based on the level of past transactions and settlement. The Group’s maximum exposure with regard to trade accounts
receivable, net of allowance reflected at the reporting date, was as follows:
Business segment: 2017 2016
The group reduces the exposure of credit risk arising from other financial assets by maintaining bank accounts in reputed banks and providing services only to
creditworthy related parties.
The management considers the bank balances and amounts due from related parties as high grade financial assets and trade accounts receivable and other
receivables as standard grade financial assets. When a financial asset is identified to be impaired, the management downgrades such assets to impaired category
and provides adequate allowances.
The Group monitors its risk to a shortage of funds using a recurring liquidity planning tool. This tool considers the maturity of financial assets (e.g. accounts
receivable) and projected cash flows from operations. The Group’s terms of sales or services require amounts to be paid within 30-90 days from the invoiced date.
The table below summarises the maturity profile of the Group’s financial liabilities at 31 December based on contractual undiscounted payments.
0 to 3 to
3 months 12 months 1 to 5 years > 5 years Total
2017
Borrowings 222,058,092 6,174,278 5,491,116 – 233,723,486
Trade accounts payable 155,271,274 – – – 155,271,274
Other payables 111,389,435 – – – 111,389,435
Amounts due to related parties 13,622,338 – – – 13,622,338
502,341,139 6,174,278 5,491,116 – 514,006,533
2016
Borrowings 293,540,841 381,973,861 149,098,538 3,509,578 828,122,818
Bank overdrafts 1,458,876 – – – 1,458,876
Trade accounts payable 463,445,576 64,508,334 – – 527,953,910
Other payables 124,642,650 17,494,403 – – 142,137,053
Amounts due to related parties 16,304,810 2,887,151 – – 19,191,961
899,392,753 466,863,749 149,098,538 3,509,578 1,518,864,618
76 Aamal Company Q.P.S.C. Annual Report 2017
The Board also seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security
afforded by a sound capital position. The Group’s target is to achieve a return on shareholders’ equity (excluding non-controlling interests) greater than the
weighted average interest expense on interest bearing loans and borrowings.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic and business conditions and shareholders’ expectation.
No changes were made in the objectives, policies or processes during the years ended 31 December 2017 and 2016.
The Group monitors the capital using a gearing ratio, which is debt divided by capital plus debt. The Group’s policy is to keep the gearing ratio below 40%.
The Group includes within debt, interest bearing loans and borrowings, less cash and cash equivalents. Capital includes equity attributable to the equity holders
of the parent.
2017 2016
Significant change in the gearing ratio from last year was due to decrease in borrowings as a result of loss of control on subsidiaries (notes 13 and 31).
Financial assets consist of bank balances, short term bank deposits, amounts due from related parties, retention and other receivables and trade accounts
receivable. Financial liabilities consist of bank overdrafts, borrowings, amounts due to related parties and trade accounts payable.
The fair values of these financial instruments except for borrowings approximate their carrying values due to the short term maturities of these instruments.
The fair value of borrowings is estimated based on discounted cash flows using interest rate currently available for the debt or similar terms and remaining
maturities. As all borrowings carry variable interest rates, the fair value of borrowings approximates their carrying values.
The estimates and underlying assumptions are reviewed regularly. Revisions to accounting estimates are recognised in the period in which the estimate is revised
if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
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77
Reclassifications were due to transactions with the other partners of entities jointly controlled by the group and entities related to those partners, which do not
qualify as related parties under IAS 24, Related Party Disclosures. Therefore, balances due to and from these entities were reclassified as part of Trade and other
receivables and Accounts payable and accruals as at 31 December 2016.
78 Aamal Company Q.P.S.C. Annual Report 2017