Ce) -FAWAZ ABDULAZIZ. ALHOKAIR & CO. "AND ITS SUBSIDIARIES (A Saudi Joint Stock Company) Consolidated Financial Stateents or the year ended 3 Mareh2017 together wi Independent Avan Rejoree ee ee ee ee sm = on a kPmG Pug A oven & Paine wre 8 nna EDEN ‘Tothe Shareholders awnz Abdulazis ATHokaie & Co, (A Saudi Joint Stock Company) Riyadh, Kingdom of Sandi Arabia Opinion ‘We ave audited the consolidated financial statements of Fawez Abdulaziz Allokair & Co. (the Company”) and is subsidiaries (colectvely, “the Group”) which comprise the consoidted slatement ffisanci postion as at 31 March 2017, he consolidated astern income, cash lows and changes in equity forthe year then ended, end nots, comprising sgufianteecouning policies ad other ‘explanatory information, {In our opinion, the accompanying consolidated financial statements preset fay, in all material respects the consolidated financial postion of he Group as wt 31 March 2017, en its consolidated financial performance and its couslidsted cath flows for the year then ended in accordance wih smueally accepted eccountng standards in the Kingdom of Sau Arabia. ass for Opinion We conducted our ait in accordance with International Standards on Aviing (ISAs that ae endorsed {nthe Kingdom of Saudi Arabia, Our espnsibilie under thoe standards are further described in the Auttrs’Responsbliies forthe Aut ofthe Consolidaed Financial Statements section of Ou fepor ‘We are independent ofthe Group in accordance with the ethical requirements in Kingdom of Saudi Acabia tat are relevant o ur euit ofthe consolidated finial statements nd we have full out oer ethical esponibilies in eccordoce with these requirement, We believe tat the aut evidence weave obtained is sufclen nd appropriate to provide a basis for our epnion. Key Auilt Maters ‘Key audit mates are those mater ths, in our professions judgment, were of mos significance in ‘ur audit ofthe consolidated financial stateeats ofthe current yer. Taese ates were addressed ia the context of our adit ofthe consolidated financial statements a ¢ whole, nd infrsieg Ou opinion ‘hereon and we donot provide a separate opinion oa these matters= i 0 I i i i i 1 i a fd ey avd matter How the matter was addressed ln our audit Provision for sow moving and defective Inventory shrinkages for acount oli for ive ony and teint dela Ax a 31 Marc 2017, the Group's invenoey tance was SK 2 411 lion (2016: SR 2.384 lion which i neted off agaist provision Tor slow moving inventory, ventory svinkapes and defextive inventory of SR-333 rillion (2016: SR. T60wilon). These Inventories are carried at lower of eset end net realizable valve. The Compaiy opertes in the fashion ret ‘seco and. inventory comprise of fashion ‘pparcls and accesories, Te reasaal nature fof the business end. changes in customer preferences, markdowns and spending patens, Primarily driven by the wider fashion nds, Inroduces uncerainy over the recovery of inventory. Management apie sigiiant [judgment in assessing the level of provision [equred for the slow’ moving and defective Inventory and inventory siskages We considered thi key aut mater a the | ‘management applies signfcan judgment in etemnining an appropriate provision fo low moving, defective inventory and inventory ‘The factors considered fy detemining thie Provision includes; ‘+ Assessment of the level of slow movin inventory using the age analysis and Distrcal sales expeience in each age bucket, + Determination of ne reaizable value based con sales forecast and + Consideration of the real of physical inventory count to deemine expected level of defective inventory and invertor —stsahage, We pesfonwed the tllowing audit provones lan to provision fr sw maw am) defective inventory” id uvenory ahnkiges vento provi | J+ Assessed the vesign and inplemeviation, and ‘ested. the operating elite of the key conimis relate to Group's aocese over tablishing and imaitoring the inventory provision. + Performed an overall tio and tend analyse for ‘cenain key brands loses the level of inventory provision and discussed with management any ‘unusual ratios or Uends sod comoborted thei responses, + On a sample bass, tested the ssurcy of the historical dta and ge analysis of invenory uted in determination of te invetory provision. ‘+ Considered managemen’s view of current Inventory profile and sales forests tht impact | ‘he estimation of lavenlory prowiion, Further, in relation to sales forecast we also evalisted ‘management's process of foeciting sales by checking histoncal accuracy ofthese forcast saint actual rsa, Determined the set reliable valve (NRV) of| inventories by examining the sales subsequent fo year-end for @ sample of sores anc compared thi | [RV withthe caryiag value of inventoret 10 check appropriates ofthe sssocted provision, + Obssined inventory count emits fom ‘management 10. consider apprprinteness of Provision fr expected level of aefcive inventory nd possible shriakages Further, toundersand the process of inventory counts, we steaded inventory | founts ata sample of sore slong. with ‘management where we assessed the design and ‘operating effectiveness of Key controls over hysialinvestry aod lo performed sample test ‘counts to check aecuracy of count suli 0 a 0 i i 0 i 0 a i 0 a) bin ton thea Good nipairment Lifer fo Nose § for accounting policy retating| We perform! the foley. adh proxednen in hs onl ad) mans 8 for od elt od nrac scour Je Assessed the desir am inp, a As ot 31 Much 2017, th carving value of” testad the operating eflecvencte Of the hey ppxiwil smouted do SAR 80S milion (2016:| onto reling tt ous. proces, vey SAR 80 wlio, The goodwill arose on the layuisiton of Wahiha Trading. Nesh and ‘Mango brand. each identified as a separte Cash Generating Unit (COU). [Goodwill is subject tan enna smpaiment tes. Fr the pupose of the Groups inpaimeat assasment of goodwil, managenent used the ‘value in use mode ander which he frre cash ows relating 10 each CGU were dieounted sand compare to thet respective recoverable lsmounis” Tn earying out impairment lssessment, significant Judgment and lsssunptions are required in determining the futre cash flows, discount rate, grow rate snd terminal vale We considered goodwill inpairment as a key laut matter due to the judgment and lssumptions involved. ia ie mpaimnent sessment process, resognition aod mesirement o goodwill impairment, ncn te assumptions sed We considered managren’s identification of Cts and the appropriateness othe location ‘of goodwill to each CGU. We tested the Key assumptions used in the management's Valup-inste calalation, including dividend and ca low projerions aad discount rates.” Furth, we assess the reasonableness of key management assumptions in respect of entimated fare cash lows, growth and dicount tes and also performed ¢ sensitivity analysis on these key asumptons We compared management assumptions aginst indusey benchmarks applied our understanding of the future prospects of the busines fom internal and external sources, and. compared areca to hstorcl experience Wie checked the accuracy and completeness of the infomation prodeced by management which _as used forthe bai of ter eset sent, “impairment review of rtures and fit ‘nd other leasehold improvements at stores (Store Asset”) Refer to Not: 3 for accounting policy relating | to property and equipment and note: 12 for elated disclosures [As at 31 March, the Group held propery and equipment of SR 1,961 milion (2016, SR 2,328 million) which comprise of land, [buds and Store Asses, The economic and sector ends facing the Group may adversely impact tbe profitability of Mores and eace the recoverable amount of the Store Asses used within the sore portfolio which i considered tbe tigger event for Inpeitmont review: Furth, eve toe Assets are widely dispersed over varausgeopraphicl ocatons and comprise of asses that in cetin eases are spocfc to brands and ths can ot be use for oer brands ‘Weperfrmed the following procedures to evaluate the impaimnent of Store Asst: Assessed the design end implementation, and lesed the operating effectiveness of the key contol relating to Group's processes over ‘cognition and rmensrement of impairment over Store Asses Examined the trading perfomance of al stores and confirmed thatthe management has cored identified all underperforming sors fr impairment eseesment Made inguiries of management regarding ‘impairment assessment for Store Asses held at underperforming sores and discussed the bis {or tbefrasessmeat. Evaluated usefidnes of asses reltng tothe loved stores through considering trading pl and discussions with stir management,Se eens ewe See eS = bia Rey nat meter aT (reas added impairment review of finteres and fittings nd other leasehold improvements a stores |* Where sss slg to th closed sees cul (Store Assets") cuntined) sate wed wih the sume brn! snes | we obtained manager Management cinsites cnt aon ta bea Cash] Lui tan amen a oe [Generting Unit (CGU) aud has perfomse a Sonnleredviahlty of sah plan review of he raging results the sens or the year Maneyement alo ness the posit | Inbving these asses to existing or hem store ep ther i coming use: However, where sore i closed loss making pire | ‘tage is recopnized over the Stre Asst, | ‘which cannot be used within the store portfolio, We considered the impairment of Store Assets as. Key audit mater as the assesment of impaiment of Stare ses involve judgment ‘bymanagemeat of factors such as usefulnesof| | ssi in other stores, future performance of stores and sles expectations Other Information included inthe Group's Anna! Report ‘Management is esponibe forthe other information The athe information comprises the information ‘neuded inthe Group's anual report but des not ncade the consolidated final steetts dour ‘sudo’ report thereon. The Group's annual repat is expected o be made avaiable tow after the date ‘tie autor repos ‘ouropinon onthe consolidated financial statements doesnot cover the othe informatio and we will notexpres any form of assurance conclusion thereon, Responsibilides of Management and Ault Commitee forthe Consolidated Financial Statements Management is responsible for the preparation and fii presenstion of the consolidated financial amen in aconfance with generally accepted accountng standards ia the Kingdom of Saudi Arabie ‘nin compliance with the Regulations fr Companies andthe Company's bylaws, and fr such intron conrol as management determines is necessary to enable the prparson of consolidated financial Slements that are fe fom material misstatement, wheter duet fad or ero. Jn preparing the consolidated ancal statement, management i responsible for assessing the Group's silty to contin a «going concern, disclosing, as applicable, mater reed fo going concer end ‘usicg the going concern basis of eocounting less managemtt either intends fo lquiat the Group to case operations, or has no elit altemative but fo do 40. ‘The Ait Commitee is spon Ausitors* Responsibilities forthe Auait of the Consolidated Financial Statements (urobjecivs are to obtain reasonable assurance shout whether the consolidated financial satements ‘8 awhole ae fee from material misstatement, whether dv ofaud oreo, and fo sue an ators "reper the incldes our opinion. Reasonable assurance isa high evel of asurence, but is et a garanee thatan audit conducted in accordance with Intemational Standards on Autng (ISAs) there endorsed inthe Kingdom of Saud Arabia wll aways detect atrial miaatement when tens. Msttements ‘an sie from fraud or error andar considered materia individually o inthe ageregn they could reasyably be expected to influence the economic decisions of users taken on the basis of these ‘conseliated financial sttemerts, efor overseeing the Groups financial reporting proces.Ses ST eS BS Se eee bile As pact oa cd in secordance wth Interac Stans ev Aung (SAN that reer n he Kinglon of Sau Arabia me cee ps! juct a man leeiond okeeee Soughout the suit We aa + Ietty al asses the risks of material austen! of the coneluted fn stems ec dato finn or er, design ad pect alt years reporsive tthe ke, sh obtain aut evidence tht is wuetent and appropri poe as fo mo pon The ick of not dtetng terial missttemient resting fom Hd s higher than for one eng fom so, #8 fiand may involve causon, Fingers, itcatonal «muss, tsreqrencttons, he ‘veri of itera contol Obtain an undrsnnny of interal cont relevant othe aun order to desigh suit procedures that ae appro in the cieumatances, bu not Zor the purpoee of expressing en option oie sffetivenes ofthe Groups tema conta + Bvaluate the appropriateness of accounting policies used and the reasonableness of accounting sstmates and elted dislosres made by management. ‘+ Conclude onthe appropriateness of management's use ofthe going concer basis of accounting ‘nd, based onthe aut evidence obtained, wheter a material unceraity enss atl fo events ‘ondtons that may cst significant doubt oa the Group's ably to contin es going concer. IE ‘ve conciue that a material uncertainty exists, we are requied to draw aftnton in our audios! "spot tothe related disclosures in the consolidated final statement or, if uch disclosures ae inadequate, to modify our opinion. Our conclusions are sed oa the aut evidence cand Up {he date of our airs’ repo However, flue events or conditions may cause the Group to cease ‘conte as a gong concem. ‘+ Bualuate the overall presexation, structure and content ofthe consolidated financial statement locluding the disclosures, and whether the consolidated financial statements represent the ‘ndedying transactions and event ina manner the achieves fi presexaton > Obtain sufficient appropiate aut evidence epating the Finacial information ofthe entities or Easiness scivities within the Group to expres an opinion on the coaslited financial satements. ‘We are responsible fore direction, supervision and performance ofthe Group aud. We Tals solely responsible for our sudtopaion, ‘We communicate with Audit Commie regarding, among other mater, the planed scope an ting ofthe ait and significant adit findings, inluding any sgifcantdeicenles in internal con) that we ietify during our aut We slo provide Audit Committe with satement that we have complied with relevant ethical ‘equements regarding independence, nd communist wih the ell eationships ad eter malts ‘hat ray easonably be hough to bea a our independence end where applicable elated safeparde, Fromthe maners communicated with Audit Commitee, we determine tose matter that wer of ost Signicanoe inthe audit ofthe consolidated Francia statements ofthe cures perio and ae therfore ‘the Key audit mater. We describe these matters in our auditors’ report unless lw oF regulation ‘precludes public disclosure about the mutter or whea in extremely rare ecamstancen, we Jeeming ‘at emater sould not be communicated in our repr bocabae the adverse conseences of dein 50 would eso o outweigh the public interest benefit of such communication, “Khalil braich Al Seis License No" 371 “ Date 19 Ramadan (43814 ‘Conespning 1 ne 2017FAWAZ. ABDULAZIZ. ALHIOKAIR & CO. AND ITS SUBSIDIARIES. (Se Js Stock Company) CONSOLIDATED BALANCE SHIERT $31 Mareb 2017 nh Ra) Nous 2 216 ASSEIS carret ase: Cah and eat euivaets + seuasesay 29685868 Fe Rectebice prepmrectsndotheranets 5.30 1065878478 910,730.49 Inventors, at 7° dosatognne — 2245,70054 nouns de fon led paies 6 _Zeggisan _"na 9661 ‘ota enreat aes BESTT Od ‘Now-curent st: Invernents in uty accounted ivenons 8.30 spsaries (136835980 Tavestnent eval forsale 3.30 saaanaoo ——9,0,000 “Advances ogi invests = 10,30 PMNs Teese propety 130 @oasagie = T4aenaT4 ‘Now-urent prin of eciableom dspot of ‘idiry 1s 2ao0a 00 Property and equipment 1 wpeusigey 2328007521 Irian ues goodwill 1 “aousenzes —toasa6s ‘iberinaagible aes 4 _Aatsiyn6 __te6.16705. “Total awrcurrent asuets Hesass “36130086 ‘Tal amet Tipguer Sanus ‘LIABILIIES AND EOUITY (curren Linh Storr borings 16 useagunses 109350171 Caren pores of lege bomowings ta “@auaiss 19371954 ‘Tne poles Gacoats§——S9Lus9st Faeries andthe curestpaybies «17 SS49RI6S|—_—SH4B5.194 ‘Amount due to ered pasty ‘ = smapit ‘Te carrer abies TS ET Nowenerent alte: {Losg tem borowings re xansgsztne 2302467004 Brploecr end of service bones SeSeT 13S BESS ‘Total no-currest lables Tian —Eioi ‘Toa abies Tasso kesuMOD. ety: uit tittle othe shareolders of Company: ‘Shae capil 20 7300,900900 10000400 Stator reserve 21 “ingens ats Foreign caencytnnaaton reserve 21 asageius) (25,0380) Retaod eigs iGosise pipes. “Trl Beaty atrbutble tothe sarcolder ofthe Sapn7ss R084 conery Neneostroling inte asa _ 2576230) ‘etal gay Taagoraser —as8s04 05 ‘Total abies end equity Taga Tne pT scampi ef ee neg! pa fhe yl een oe aFAWAZ ABDULAZIZ, ALHOKAIR & CO. AND ITS SUMSIDIARIES. (8 Saud Jos Stok Company) CONSOLIDATED STATEMENT OF INCOME or the yen Tals) ing operations 2 3 1618 7 ‘Duscontioned operation: ‘Lee fom dcantiood operation, nt of acome before Zahat and income tax and nom ‘oatoling Interest ‘ala nd incon ax charg, net ~ ‘Ineome before Now-contrling interests ‘Noweoatolng ites [Net nebee forthe year arags per share: Atibuabe fo operating income % ‘Artbtabe ona nome forte year 6 -Baraings per share continuing operation: _Atabe to opening income ‘srtbutebeto net acome forthe year BB ied 31 Marek 2017 piney 705.6695, ASAT NAST) 1su8822.276 254299519) Ga10579) 318,311.48 3.9567 usr. 0n8 667) WIS. 156 saerasn, ae ona4s0) m6 eonnsena38 (SITET) 1.768, 792,692 (253987529) (61454395) (25 180,338) 352,081,077 Bes 185,551) E 788265158 037.7618) ara 1ss7278) eas 5188872 ase 406 258 496 i ‘The accompanying notes 11031 ar anintegrl prt of thee comclidted Financial satementsAWA?, ABDIILA7I7.ALHOKAIR & CO. AND FTS GUTRSTDIARIES Bor the yeas ended 31 March 2017 (Saudi Riya) Nas mn a6 Net income for he year 391108,187 61580862 Adnaments recor et income t a sh fl fom operating act: “Zalsaod ccs charge 19 oan 78 ‘Defered a dicontine operations ~ — speeat3y [Netaovenest in aotrennraling net saan 6.1887) Depreciation nd mera 35570680 33450,530, ‘Shae in et ow / (income of est counted invent, ost ‘Boscers——(.iz3105) Provision for employe end of verve eos rageisrs 13108 Provision agua dub ecetabes uss ‘visio agua! dsb advances agin vere sms Provision gn! dbf relate party roses iyners = Provision forlow movig invertor, act vases zn 902 Wai off of property end quent nd ter intmge nets woammsia 2954129 ‘Wit off of vance agin ivermes ‘aon is (Gin c spon of property an geipment 5000) nt one Basy9308 TIS 533 “rnd ecvbles, repayment ober ws asig29399 —1m1%340) ‘Amouta defen: ised part sasm3300 (11883177) ventas cansiengy 249,281,024) Trae pyle ‘aigriase—“164zi701 Aran expen eo ter caren peyables isso 17479121 (Cah mend from operations aaon3s6 256200808 ‘Zaha end ince x pd zas6soy (12381453) ployee eof of sevice benefits ald taza _ “7560 ‘Neca gonerated from operating active —ssage —ere365755 (Cau Flow from Investing Activites: ‘Acs of property and eqemect 2 Gesamasy 33385050) ‘arta of ctr sgl tacts 4 “aaamns —“o77%400) Dispos of dicoatnoed pein, netofcuhdeponedof 1S MMS) = ‘Acquistion oft bin, net fash ted = 1220305) ‘Acraees nxn vestments - Gaza) ‘Proends on depos propery and eqipaest 116s H550_ ‘Neca ued in ening wc Gsi7e5s0e) — (5194572) (Cea Fo from Financing Actives: Proceed om long tera boroungs ts7soogq0 381,137,500 {ong im borowings paid ding the ear wsogessn — aagie.éon) ‘Soren bomowings (pad) rectved dring the ya, ne (C6a388) 26.25.98 Dividends a. i [Neteadh oe fa ouncagscthter Za 19 ‘Ne change in benk balances end csh iene (Ces endothe a thbopsaing of yar 218951536 (Cash and cash eqtvalet ate end of the ear eases —asgast zee Significant non-cash ransucthas: ‘Dividend pete — 21009000 Receible fr digo ofa bsidiary 15384000000 “Tranter of capil work a pros 1 lta pry 5355988 - ‘Truro oer mcivabe to reltd party 33298715 Dips ofinvertent inequity accounted imeie srasi9 - VG “Tee accompanying notes 1031 ar an tail psf hese console saci! dates (WA BQ, eS — =mo oo eee aa FAWAZ ABDULAZIZ ALHOKAIR & CO. AND (0 Saud Join Stock Company) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, For the year ended 1 March 2017 {Saud Rial) ORGANIZATION AND ACTiVIiES Fawar Abdulaziz AIokar& Co, (the “Company sls Salil Stock Company sere Riyedb, Kingdom of Sands Arabia under Comercial Reyitnion No. 1010076200 ted Shh 14104 (caespandig o 18 Marl (99, ‘The Company is engaged inte folowing acti ‘Waolessleand retail rading in ready made cot for men, women and children thoes, eles, hese nd office fariure, perfumes, natural cosmetics, omament and betuly mmteals end thle ‘compounds and wadtonl jewel ‘Wholesale and retail rang in sports wares and shoes and their complementary. ‘+ Whoiessle and retail ading in packed foods and imported food produce. “Management and operation of optics centers, wholesale and real trading in eye gases and san lasses, contact lense, optical equipment and accessories. 4 Trading agencies. > Purchase of land and construction of buildings thereon fo the purpose of running the Company's sctvies and busines, Manufacture, wholesale and retain hays, robes, scarfs and other women embroidered gowns Wholessleand retin god silver, jewelry, precios stones, diamonds, gold oraments nd precious nell, Own and operste entertainment centers and scquire related equipment ‘These consolidted financial statements include the esets,linilites and result of operations ofthe Company andthe elowing sbsiiaries Direct and indirect, shareholding % Subsidiary Company Countryoficoontion ~~ 2017 2016 ‘Al Wabeedah Equipment Co. Ld ‘Kingdom of Saudi Arabia 100100 Hilt B.Al Kalam Parers Co. forueding -Kingdomof Saudi Abia 100100 Logistics Fashion Trading United Arab Emirates 100 100, ‘Advanced Feshion Concepts United Arab Emirates 190 100 Iterations Fashion Franchising United Arab Emirates 100 100 Swudi Retail Co Lid Kingdom of Saudi Arabia 100100 ‘Wahbe Trading Company Limited Kingdom of Saudi Arbis 100100, Fashion Retail Kezastan LLP ‘epuble of Kazakstan 100 100, Global Apparel Kazakhstan LLP Republic of Kazakstan 100100, ‘Retsl Group Georgia LLC Geos 100100, ‘Master Real Georgia LLC eons 100100, Spanish Retail Georgia 1.1.6 Georpa 400 100 ro Retail Georgia LLC Georgia 100 100, Best Retail Gcorgia LLC Georea 100 100, “Mega Store Georgia LLC 100 100, Fashion Real Georgia LLC 100 100 Global Apparel Georgia LLC 100 100 Retail Group Holding LUC 00 100 [RGAM Ress! Group Amenia CISC 100 100 Spanish Retail CISC 100 00 ZR Fashion Retail CISC 100100, Global Apparel CISC 100100, BR Fashion Real CISC ‘Armenia 100 100, ‘Master Retail CISC ‘Ameria 100100, est Retail CISC ‘Amen too 100== i 0 0 i 0 | 0 i =a = FAWAZ ABDULAZIZ ALHOKAIR & CO. AND TS SUBSIDIARIES A Saud Jot Stock Cony) NOTES 10-THE CONSOLIDATED FINANCIAL STATEMENTS ar the searended 1 March 2077 ORGANIZATION AND ACHIVITIES (conned Diet and sturcboling %_ Sutin Company Conu finee mir 2016 Kenil Group ise Armia 100 100 Prokeal CISC ‘mia 100 100 Inttonal Reta oF Morea Moros. 0 100 Nek Trading Poets Company Kingiom ofSeud Artin 190100 etl Group of America nied Stes of Amerea 100100 Monson Assessors USA Unied Stes of Amersa ——1M)——100 eal Group Jexayer, Unted Stats of Aner i000, Resil Grooup France United Sites ofAmeiss 100100 Real Group Spin United tes of Ameen 100100 Real Group Gemaay United Stes of Amerst 100100 atl Group Lipsy Unied Sites of America 100100 Rel Crop Zippy United Stes of Aenea 100100 etl Grovp Corfe United Stas ofAmerca 100100 Reta Group ormar United Ses ofAmercn 100100 eail Groop Balkans doo Beogred Republic of Sea tao 100, Real Group Balas dro Peden Balkan Peninsla 190 100 Real Group Balazs doo Balin Balas Peninsale i000 Moces Ova Holding Lined United Kingdom 00 100 Mots Own Lined United King 100 100 Mocs Own Interntiona Li. United Kington 10 100 Rat Group Egypt, Arab Republica Egypt 838 RIG? Ca ‘ab Republica Expt 98 esl Group onda Hashenite Kingdom of orn 9895 Mult Tren Co. Morocco 8 etal Group Asean ‘Azcbaijan ws Falion Rai Azoyean ‘etbajan wo Spar Ret Arrbyean Aoetajan ss Gta Apparel Ansan atajen ss Meg Store Azetayan ‘aataian BO Mase Real Azetayesn ‘ztbaen ass Frofal Azabayean Rectan ss etal Grp Hoking Aoetbajan ss ‘Boa Real Azan ‘Aosta aS Al Fre Trading Ageeies Company Kingdom ofSaudi Abin 7970 Giotl Leive SU Spain = 100 In aiiton tothe sbove, the Grovp, dieetly and indie, owns certin dormant subsidiaries and spec purpose vehicles across several Countries which are not mtral tothe Group ‘The principal activites ofall ofthe above subsidiary companies ae wholesale end real trading of fashion appsels and indoor entertainment business fr kids. The indtet shareholding represen cross ‘ownership among the subsidiary companies, Furth, during the year ended 31 March 2017, the Group had acquired 85% equity interest in Retail ‘Cluste Pakistn (Private) Limited and incorporated a company Alas Poushan ibe, hugh ts Dba based wholly owned subsiivies, for total values of SR 3,100 (equivalent to PRR 85/000) sad SR 2.100, ‘espesively. The Group plans to dispose ofthese subsidiaries and subsequent, ownership othe ety ‘was transfered tothe Holding Company. As the Group only had tenporary Cot over the enites, they hve not heen include is he coneoited finn statements,ee oo es ee » ° ° PAWAZ ABDULAZIZ. ALHOKAIR & CO. AND ITS SUBSIDIARIES. (4 Saud foi Stock Company) NOTES TO TIE CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2017 (Saudi Rivals Te seeompanying consolidated faspsl statements have bees prepared in aconlance withthe soncrally accept acco ta Public Actountans(SOCPA). ‘As require by Saudi Ongsizatin for Cenfed Public Accountants (SOCPA), lite companies ae ‘guid to transition to Internal Financial Repvting Standards CIFRS*) that are endorsed by SOCPA effective! January 2017 for preparation of heir inncial statements sin Sua aise by he Sata Organization for Ceres ‘In reparing the first set of IFRS financial statements, the Group wil calze the impact of te firs time adoption of IFRS on curren and pio year fascial statements and wil secordingly Incorporate the necessary adjstents ins fist tof IFRS Finacial statements. Basls of measurement ‘The accompanying consolidated nancial statements have been prepared on historical cst basis, except for investment svalable forse, whic i sad at fir ale, using the eceual basi of sccountng andthe pong concem caneept Funetional and presentation currency ‘These consolidated iancal statements are presented in Saudi Riyals (SR) which is the fuetonal and reporting currency ofthe Group All anus have been rounded tothe nearest Saudi Riyl, unless ‘otherwise sated ‘Bass of consolidation ‘The consolidated financial statements comprise the financial statements of the Company and its ‘bse sat March 31 each year The financial statements ofthe subsidiaries re propare forthe ‘same reporting yeaa the Company, except for Retail Group of Ballas for which te yearend as 31 December, © Sabsidiaries Sobsiiaris are entities controled by the Group. Control exists when the Company hes the power to govern the financial and operating policies ofan entity o as to obtnin benefits fom ts activities, In Sssessing contol, potential voting rights that presenly are exercisable are taken into account. Subsidiaries ae fly consolideed fr the date of acquisition, being the date on which the Company ‘bisine contol, and continue to be consolidated until the date that such contol ceases, Subsidiaries where contol is ony intended fo be temporary are not consolidated in the financial statements, All ransections and resulting balances between the Company end the subsidies and those arising ‘between the subsidiaries ae eliminated in preparing these consolidated financial saements, Any ‘unrealized gains and loses rising fom intra-group trinsaction are climate on consolation © Now-controling interest ‘Now-controling interes represents te iteret in sbsiiar companies, not held by the Company which fare measured at thee proportionate share inthe sbsiiay's dentiiable net asc, Transactions with Non-coniroling intrest pres are eed as transaction with parties exteral othe Group. Use of estimates and judgments ‘Thepreparation of consolidted fnocal statements requires management o make judgment, estimates and assumption that affect the application of plies and reported mounts of ars, abi, incorve and expenses, Actual results may difer for thee estimates. Estimates and underlying essumption are reviewed on an ongoing basis. Revisions accounting ‘estimates are ecognied inthe years in which the estimate re revised and in future years affected Information shout significant areas of etimation, uncersimy and eral judgments & applying ‘sccouttng policies tat have significa effet on the anetns cine inthe inva eet seas fallow= om me oe oo m= = on om Om — os os I AWAZ.AR AZVZ ALMOKAIR & CO, AND HTS SUBS (\ Sad out Stock Company) NOTES TO TIP CONSOLIDATED FINANCIAL STATEM! or the year ended 31 Marsh 2017 LASS OF PREPARATION (continue) (9 Prowsiom fr doubalreceibles, advances lather erent asw's ‘8 provisin for inpuinment of receivables. dou advances abd othe cure! abs’ is clashed Steve sete evidence tht the Group wl ot be seo ole snout le accruing ‘he original tems ofthe ayreement. Sigua Raaucal deus of the debtor, probably hat the 25,180) ‘inaace charges C1800) (580) (1183586) [Net income oss) 852651 (236,68) (163) 615,8082m. PAWAZ. ABDULAZIZ. ALHOKAIR & CO. AND ITS SUBSIDIARIES, (Sa it Stok Company) NOTES'TO THE CONSOLIDATED FINANCIAL SEATEMENTS For the year ended 31 March 2017 ‘Saal Riyals FAM VALUE Fir value isthe enna! for which an ase could be exchanged ofa Habiliy sete Dewees owedgeable wil patice fn at's engi Iransaction. As the Group's consolidated financial Intment ate prepared under th storia ot tho except reevaluate aalsbe-fo fate aisle difference cam arc etweea the carrying vals anther vse The a values of ‘nana instrament rent materially uffret fom their ayn eles HINANCH Al ‘AGEMENT Financial instruments carried onthe balance shzt principally inelade cash nd cash equivalents, related artis, repayments, ober assets, ade payables, accruals and her babies. Cred risk Credit risk is the isk tat one party wil fil to discharge an obligatioe and wil cause the oter party £9 {nr financial loss. The Compaay bas no significa: concentration of eet risks, Cash and ash ‘ruivalets ae pled with national ad interoational banks with sound rei ratings, Trade receivable {bd other assets are cated nt of provision for doubefl receivables, i aay. guid isk -Liguiity sis thers hat an enterprise wil encounter difclt in sing funds to meet commitments ‘sociated with financial instruments. Ligiity sk may result fom te inability to sel financial ast ‘Quickly at an amount lose fits fir vale, Liquidity rik is managedby monitoring on regular basis that sutiient funds ze avilable to met the Group's future commitments. Commission rate risk isthe exposure to various risk associated withthe effect of fuetust ons in the previlag commission {ates on the Group financial postion and eath flows. slams banking fetes (Murababs) ad Sukuk famousting t0°SR 2311.9 milion at 31 March 2017 (2016: SR 2,560.5 milion) bear financing ‘commission charps atthe prevailing marke es, “The Group's poly ito manage is Faancing charges using a mix of fixed and variable comission rate debts The following tele demonstrates the sastvity of the income o reasonable posible changes {nthe commission mate, with all other variables beld constant. There is no direct impect on the Company's equity Increase ocrease ‘inbass pds of Effect on Income commisslon rates __ for the a7 SAR 30 6936.00) SAR 0 936,000 ais SAR 0 (7,881,000) SAR 0 181,000 Currency Risk isis tha the vale of financial instrument wil uctuste due to changes in foreign exchange rats. ‘The Company and its subsidiaries transactions are pecially in Sadi rials, Faros and U.S. dollars Management moritors fie fvctutions in cumensy exchange tte, and te effect of tbe currency ‘uctustion hasbeen accosted for inthe consolidated Fnncial statements2. a FAWAZA NOKAIR & CO, AND ITS SUBSIDIARIES. 7 Saou Stock Copy) NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS or the yearended 31 March 2007 ‘Sud Riyals) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT (continued) Garroncy Risk (continued) [At the ena of the year the Company aid ts subsidiaries hal the following significant net cumeney Cxpovures i fveign corensies Peseta helo are the near ass and iis. et nei orign curoncy exposures 7 ame ro 17649645) _(44.087.787) “United States Doll 24,688,728 7,083,585 Great Britain Pound (6.245090) 1, 952,98 United Arab Emirates Dsham 5,625,628 103513,503, pian Pound Hss.96080. 36508596 “The table below shows the non-pegged curencis to which the Company and its subsidiaries have a ‘Sgnifiant exposure seat 31 March 2017 and 2016 on its etary assets ad ibis. The analysis ‘Glcuines dc eft of reavoable possible movement sf the euroney rte nganet SB, with ll oer ‘arabes Held conta, onthe consolidated satement of income. Currency exposures Change in Ped 6 currency Baro ri (74103.000)_ (18,768,000) (Great Brtin Pound 41-30% —G.889,000" 0.073.000 United Amb Emirates Dirham, 410% 5,164,000, 1,072,808, Egyptian Pound 10% 3,464,000 2,386,000, ‘Aste Saud Rigel is pegged to US Doll, the group is not exposed to sigaiicnt currency risk ising ‘ou oF US Dollar. COMPARATIVE FIGURES “The following comparatives have been relassified to conform to current year presentation Reported in2016 Redassified to Amount “Tavestment in asocstes and others’ Trade (Cente Co. Limited Investment - Available for sle94,00,000 “tavestments in associates and other’ - Galeria ‘Mal = Iavestment propery 250274 “Tavertmensin associates and other’ - Other Taverns Advances aginst vestments 13,199,600 Other current ase 3,000,289, /AL OF THE. “The consolidte finanil statements were approved bythe Board of Directors for issuance op 19 Ramadan 1438 (corespouing to 14 Jue 2017)