Eflatoun Company

Financial statements
for the year ended 31 December 2009
Statement of comprehensive income
for the year ended 31 December 2009
Notes Year Year
ended ended
31-Dec-09 31-Dec-08

EUR '000 EUR '000

Revenue 2 8,435 7,847

Cost of sales (3,943) (3,965)
Gross profit 4,492 3,882

Distribution costs (254) (246)

Administrative expenses (138) (232)
Profit from operations 3 4,100 3,404

Finance costs 4 (15) (15)

Profit before tax 4,085 3,389

Income tax expense 5 (1,716) (1,011)

Profit after tax 2,369 2,378

Net profit for the year 2,369 2,378

Statement of financial position
at 31 December 2015
31-Dec-15 31-Dec-14

Notes EUR '000 EUR '000

ASSETS

Non-current assets
Property, plant and equipment 6 2,487 906
2,487 906

Current assets
Inventories 7 410 243
Trade and other receivables 8 392 193
Bank balances and cash 8 23 32
825 468

Total assets 3,312 1,374

EQUITY AND LIABILITIES

Capital and reserves

Share capital 9 1 1
Accumulated profits 10 2,559 190
2,560 191

Non-current liabilities
Bank loans due after one year 11 100 100
100 100

Current liabilities
Trade and other payables 12 65 72
Tax liabilities 587 1011
652 1083

Total equity and liabilities 3,312 1,374

Changes in equity
for the year ended 31 December 2015

Share Accumulated
Notes capital profits/(loss) Total

Euro 000 Euro 000 Euro 000

Balance at 1 January 2014 1,300 (2,188,000) (2,186,700)

Transfers to income not recognised in the statement of comprehensive 0 0 0

Net profit for the year 0 2,378,000 2,378,000
Preference share dividends 9,10 0 (30) (30)
Ordinary share dividends 0 0 0
Balance at 1 January 2015 1,300 189,970 191,270

Transfers to income not recognised in the statement of comprehensive 0 0 0

Net profit for the year 0 2,369,000 2,369,000
Preference share dividends 9,10 0 (30) (30)
Ordinary share dividends 0 0 0
Balance at 31 December 2015 1,300 2,558,940 2,560,240
Summary of significant accounting policies
for the year ended 31 December 2015

The financial statements have been prepared under consistent accounting policies for both years. There is
no significant differences between the accounting policies followed by the Company and those included in
the International Financial Reporting Standards (IFRS) apart from disclosure items. The financial
statements have been prepared on the historical cost basis, except for the revaluation of land and buildings
and certain financial instruments. The principal accounting policies adopted are set out below.

Revenue recognition

Sales of goods are recognised when goods are delivered and title has passed.

Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as
reported in the statement of comprehensive income because it excludes items of income or expense that
are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
The Company’s liability for current tax is calculated using tax rates that have been enacted or substantively
enacted by the statement of financial position date.

Deferred tax is the tax expected to be payable or recoverable on differences between the carrying amount
of assets and liabilities in the financial statements and the corresponding tax basis used in the computation
of taxable profit, and is accounted for using the statement of financial position liability method. Deferred tax
liabilities are generally recognised for all taxable temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profits will be available against which deductible
temporary differences can be utilised. Deferred tax is calculated at the tax rates that are expected to apply
to the period when the liability is settled or the asset realised. Deferred tax is charged or credited in the
statement of comprehensive income, except when it relates to items charged or credited directly to equity,
in which case the deferred tax is also dealt with in equity.

Property, plant and equipment

Land and buildings held for use in the production or supply of goods or services, or for administrative
purposes, are stated in the statement of financial position at their revalued amounts, being the fair value on
the basis of their existing use at the date of revaluation, less any subsequent accumulated depreciation and
subsequent accumulated impairment losses. Revaluations are performed with sufficient regularity such that
the carrying amount does not differ materially from that which would be determined using fair values at the
end of the reporting period. Any revaluation increase arising on the revaluation of such land and buildings is
credited to the properties revaluation reserve, except to the extent that it reverses a revaluation decrease
for the same asset previously recognised as an expense, in which case the increase is credited to the
statement of comprehensive income to the extent of the decrease previously charged. A decrease in
carrying amount arising on the revaluation of such land and buildings is charged as an expense to the
extent that it
exceeds the balance, if any, held in the properties revaluation reserve relating to a previous revaluation of
that asset. Depreciation on revalued buildings is charged to income. On the subsequent sale or retirement
of a revalued property, the attributable revaluation surplus remaining in the properties revaluation reserve is
transferred directly to accumulated profits.

Fixtures and equipment are stated at cost less accumulated depreciation and any recognised impairment
loss.
Summary of significant accounting policies (cont)
for the year ended 31 December 2015
Property, plant and equipment (continued)

Depreciation is charged so as to write off the cost or valuation of assets, other than land, over their
estimated useful lives, using the straight-line method, on the following bases:

Buildings 4%
Fixtures and equipment 10% - 30%

The gain or loss arising on the disposal or retirement of an asset is determined as the difference between
the sales proceeds and the carrying amount of the asset and is recognised in income.

Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and,
where applicable, direct labour costs and those overheads that have been incurred in bringing the
inventories to their present location and condition. Cost is calculated using the weighted average method.
Net realisable value represents the estimated selling price less all estimated costs of completion and costs
to be incurred in marketing, selling and distribution.

Financial assets and liabilities

Financial assets and financial liabilities are recognised on the Company’s statement of financial position
when the Company becomes a party to the contractual provisions of the instrument.

Trade receivables
Trade receivables are stated at their nominal value as reduced byn appropriate allowances for estimated
irrecoverable amounts.

Bank borrowings
Interest-bearing bank loans and overdrafts are recorded at the proceeds received, net of direct issue costs.
Finance charges, including premiums payable on settlement or redemption, are accounted for on an
accrual basis and are added to the carrying amount of the instrument to the extent that they are not settled
in the period in which they arise.

Trade payables
Trade payables are stated at their nominal value.

Equity instruments

Equity instruments issued by the Company are recorded at the proceeds received, net of direct issue costs.
Notes to the financial statements
for the year ended 31 December 2015
1 General

Eflatoun Company (the "Company") is a limited company incorporated in Egypt. The principal activity
of the Company is the production of metal pipes. These financial statements are presented in Euros.

2 Revenue

All revenue relates to continuing operations and to the principal activity of the Company. All sales
and production are in Egypt.

3 Profits from operations

Profit from operations has been arrived at after charging (crediting): 2015 2014
€ '000 € '000
Cost of inventories recognised as an expense 1,843 1,324
Staff costs 235 278
Total depreciation 539 328

4 Finance costs 2015 2014

€ '000 € '000
Interest on bank overdrafts and loans 15 15

5 Income tax expense 2015 2014

€ '000 € '000
Current tax - domestic 1,716 1,011
Deferred tax 0 0
1,716 1,011

Domestic income tax is calculated at 42 per cent (2014: 42 per cent) of the estimated assessable
profit for the year.

The charge for the year can be reconciled to the profit per the statement of comprehensive income as follows:

2015 2014
€ '000 € '000
Profit before tax 4,085 3,389

Tax at the domestic income tax rate of 42% (2014: 42%) 1,716 1,423
Losses brought forward 0 (412)
Tax in the statement of comprehensive income 1,716 1,011

Preference share dividends (see Note 9) are deductible for tax purposes, but are immaterial for the
purposes of the reconciliation above.
Notes to the financial statements (continued)
for the year ended 31 December 2015
6 Property, plant and equipment
Land and Fixtures and
buildings equipment Total
Cost
At 1 January 2015 1,840 809 2,649
Additions 1,600 580 2,180
Disposals 0 (60) (60)
At 31 December 2015 3,440 1,329 4,769

Accumulated depreciation
At 1 January 2015 1,151 592 1,743
Charge for the year 155 399 554
Eliminated on disposals 0 (15) (15)
At 31 December 2015 1,306 976 2,282

Carrying amount
At 31 December 2015 2,134 353 2,487
At 31 December 2014 689 217 906

7 Inventories 2015 2014

€ '000 € '000
Raw materials 235 150
Work-in-progress 43 13
Finished goods 132 80
410 243

8 Other financial assets

Trade and other receivables at the end of the reporting period comprise amounts receivable from the
sale of goods of €392m (2014: €193m). The average credit period taken on sales of good is 36
days. The directors consider that the carrying amount of trade and other receivables approximates
their fair value.

Bank balances and cash comprise cash held by the Company.

9 Share capital 2015 2014

€'000 €'000
Authorised:
10,000,000 ordinary shares of par value €1 each 10,000 10,000
300,000 €1 10% preference shares 300 300
10,300 10,300

Issued and fully paid:

1,000,000 ordinary share of par value €1 each 1,000 1,000
300,000 €1 10% preference shares 300 300
1,300 1,300

There were no movements in the share capital of the Company in the 2015 and 2014 reporting
period.

In November 2014 the Company entered a contract to pay for €400,000 of services from Likl
Company in either cash or 100,000 ordinary shares on 7 August 2015, at the Company's option.
The contract was paid in cash on 7 August 2015.

The Company has one class of ordinary shares which carry no right to fixed income.
The Company had 300,000 €1 10% preference shares throughout 2014 and 2015, which are part of
equity. Preference share dividends in 2015 were €30,000 (2014: €30,000). Preference share
dividends are tax deductible.
Notes to the financial statements (continued)
for the year ended 31 December 2015
10 Accumulated profits
€ '000
Balance at 1 January 2014 (2,188)
Dividends paid 0
Net profit for the year 2,378
Balance at 1 January 2015 190
Dividends paid 0
Net profit for the year 2,369
Balance at 31 December 2015 2,559

11 Bank overdrafts and loans 2015 2014

€ '000 € '000
Bank loans 100 100
100 100

All borrowings are repayable after five years.

All borrowings are denominated in Euros. The average interest rate paid during 2015 was 15%
(2014: 15%). The directors estimate that the fair value of the Company's borrowings is the same as
the carrying value.

The Company has one 10 year bank loan of €100million (2014: €100million) repayable by equal
annual instalments beginning 1 January 2016.

12 Other financial liabilities

Trade and other payables principally comprise amounts outstanding for trade purchases and
ongoing costs. The average credit period taken on trade purchases is 47 days.

The directors consider that the carrying amount of trade payables approximates to their fair value.

13 Approval of financial statements

The financial statements were approved by the board of directors and authorised for issue on 2
March 2014.