Al Ezz Gds Regs Regulatory News (AEZD)

6 Dec 2006 17:28

Al EZZ Steel Rebars S.A.E.06 December 2006 Translation Al Ezz Steel Rebars Company (An Egyptian Joint Stock Company) Consolidated Financial Statements And Limited Review Report As of 30 September 2006 Translation Limited Review Report To The Board of Directors of Al Ezz Steel Rebars Company We have reviewed the consolidated financial statements of Al Ezz Steel Rebars(An Egyptian Joint Stock company) represented in the consolidated financialposition as of 30 September 2006, the related consolidated statements of income,changes in shareholders' equity, and cash flows for the nine months then ended.These consolidated financial statements are the responsibility of the company'smanagement. Our responsibility is to issue a report on these financialstatements based on our review. We did not review the financial statements of Al Ezz Steel Mills company whichstatements reflect total assets constituting 3 % and total revenues constituting9 % of the related consolidated totals and for the purpose of preparing ourreview report, we relied on the limited review report of the auditors of Al EzzSteel Mills company as of 30 September 2006 relating to balances included in theconsolidated financial statements. We conducted our review in accordance with the Egyptian Auditing Standards.Those standards require that we plan and perform the review to obtain moderateassurance about whether the financial statements are free of materialmisstatement. A review is limited primarily to inquiries of the company'spersonnel and analytical procedures applied to financial data and thus providesless assurance than an audit. We have not performed an audit and, accordingly,we do not express an audit opinion. Based on our review of the consolidated financial statements of Al Ezz SteelRebars Company and the limited review report of the financial position of Al EzzSteel Mills (Subsidiary company) for the nine months ended 30 September 2006,nothing has come to our attention that causes us to believe that theaccompanying financial statements do not give a true and fair view in accordancewith Egyptian Accounting Standards. (KPMG Hazem Hassan) Cairo, 16 November 2006 Translation Al Ezz Steel Rebars Company (An Egyptian Joint Stock Company) Consolidated Balance Sheet As of 30 September 2006 Notes 30/9/2006 31/12/2005 No. LE LE Long Term Assets Fixed assets (net) (3),(2-4) 7 050 400 355 912 399 418 Projects in progress (4),(2-5) 12 181 657 743 189 Investments in associates (5),(2-6) 533 001 472 944 071 485 Long term lending (6) 8 358 656 - Other long term assets (net) (2-8) 735 027 1 018 512 Total long term assets 7 604 677 167 1 858 232 604 Current Assets Inventory (8),(2-9) 1 898 882 233 454 199 169 Accounts and notes receivable (net) (9),(2-10) 449 296 996 187 211 238 Accrued from related parties (20-1),(2-17) 8 822 594 52 218 554 Suppliers - debit balances (net) 132 543 059 101 629 131 Debtors and other debit balances (net) (10),(2-10) 183 381 125 27 499 663 Investments available for sale (7),(2-7) 66 700 66 700 Cash at banks and on hand (11) 1 170 020 554 19 986 432 Total current assets 3 843 013 261 842 810 887 Current Liabilities Provisions (12),(2-14) 181 513 588 - Banks - credit balances & credit facilities (13) 1 569 149 069 349 930 822 Suppliers and notes payable (14),(2-11) 427 592 358 102 942 531 Accrued for related parties (20-2),(2-17) 2 904 154 8 567 159 Creditors and other credit balances (15),(2-11) 699 944 430 160 321 748 Dividends payable (16) 10 820 899 660 705 Bonds loan (34),(17), 28 984 551 194 752 688 (2-22) Loan installments due within one year (18),(2-20) 634 747 908 136 063 766 Total current liabilities 3 555 656 957 953 239 419 Working capital /(deficit) 287 356 304 (110 428 532) Total investment 7 892 033 471 1 747 804 072 Financed as follows: Shareholders' Equity Issued and paid in capital (34),(21) 907 609 370 430 000 000 Legal reserve (22),(2-19) 3 759 284 583 18 597 606 Retained earnings (23) 463 208 607 35 520 742 Total shareholders' equity 5 130 102 560 484 118 348 Less : Treasury stocks (24) (35 883 741) (35 883 741) 5 094 218 819 448 234 607 Net profit for the period/year 738 951 118 450 340 983 Net shareholders' equity including net profit for the 5 833 169 937 898 575 590 period/year Less: The difference resulting from the acquisition of (33) (3 280 492 926) - Al Ezz El Dekhaila for Steel - Alexandria Net shareholders' equity 2 552 677 011 898 575 590 Minority interest 1 779 672 889 1 640 510 Long Term Liabilities Long term loans (18),(2-20) 2 866 090 270 816 993 646 Other long term liabilities (19), (2-23) 354 315 349 1 779 701 Total long term liabilities 3 220 405 619 818 773 347 Deffered tax liabilities (30),(2-18) 339 277 952 28 814 625 Total shareholders' equity and long term assets 7 892 033 471 1 747 804 072 The accompanying notes from No. (1) to No. (34) are an integral part of these financial statements and should be read therewith. Limited review report "attached" Chairman (KPMG Hazem Hassan) Eng. Ahmed Abdel Aziz Ezz Translation Al Ezz Steel Rebars Company (An Egyptian Joint Stock Company) Consolidated Income Statement For the nine months ended 30 September 2006 For the nine For the nine months ended months ended Notes 30/9/2006 30/9/2005 No. LE LE Net sales (2-12) 7 882 470 366 2 428 274 775 Less : Cost of sales 5 704 233 588 2 248 983 643 Gross profit 2 178 236 778 179 291 132 Add/(Less) : General and administrative expenses (85 306 415) (22 962 114) Administrative depreciation (4 074 969) (1 487 722) Interest and financing charges (2-13) (390 731 677) (170 080 840) Provisions (2-14) (1 484 000) - Investments (losses)/income (2-12) ( 5 992 030) 363 722 234 Foreign currency exchange differences (losses)/gains (7 219 328) 8 391 542 Unused provisions (12) 51 000 000 - Interest income 20 296 992 128 578 Other revenues (25) 53 391 663 4 468 552 Capital gain 30 035 33 002 Revenue from sale of investments 435 758 - Net profit for the period before taxes 1 808 582 807 361 504 364 (Less): Corporate taxes (251 644 477) - Deferred taxes (2-18),(30) (106 020 623) - Net profit for the period after taxes 1 450 917 707 361 504 364 (Less): Minority interest (711 966 589) (1 564 097) Net profit for the period after minority interest 738 951 118 359 940 267 The accompanying notes from No. (1) to No. (34) are an integral part of these financial statements and should be read therewith. Translation Al Ezz Steel Rebars Company (An Egyptian Joint Stock Company) Consolidated Statement Of Changes In Shareholders' Equity For the nine months ended 30 September 2006 The difference resulting from the Net profit Note Share Legal acquistion Retained Treasury for of Al Ezz No. Capital Reserve El Dekhaila Earnings Stocks the period/ Total for Steel- year Alexandria LE LE LE LE LE LE LEBalance as of 31 December 2004 430 000 000 8 575 203 - (155 256 689) (35 883 741) 200 448 051 447 882 824 Adjusting (losses) carried over by adversing over-accrued expenses for Al-Ezz Steel Mills - - - 351 783 - - 351 783 Adjusted balance 430 000 000 8 575 203 - (154 904 906) (35 883 741) 200 448 051 448 234 607 Transferred to legal reserve - 10 022 403 - - - (10 022 403) - Adjusting (losses) carried over by net profit of 2004 - - - 190 425 648 - (190 425 648) - Net profit for the year - - - - - 450 340 983 450 340 983 Balance as of 31 December 2005 430 000 000 18 597 606 - 35 520 742 (35 883 741) 450 340 983 898 575 590 The increase in capital (21) 477 609 370 - - - - - 477 609 370 Additional paid in capital (22) -3 718 169 928 - - - -3 718 169 928 The difference resulting from the acquisition of Al Ezz El Dekhaila for Steel - Alexandria (33) - - (3 280 492 926) - - -(3 280 492 926) Transferred to legal reserve - 22 517 049 - - - (22 517 049) - Adjusting retained earnings by the profits of 2005 - - - 427 823 934 - (427 823 934) - Adjusting retained earnings by the company's share in employees profits and the board of directors bonus distributed from Al Ezz El Dekhaila for Steel - Alexandria for 2005 - - - (11 223 175) - - (11 223 175) Adjusting retained earning by the company's share in profit of El Ezz Flat Steel Company (23) - - - 11 087 106 - - 11 087 106 Net profit for the period - - - - - 738 951 118 738 951 118 Balance as of 30 September 2006 907 609 370 3 759 284 583(3 280 492 926) 463 208 607 (35 883 741)738 951 118 2 552 677 011 The accompanying notes from No. (1) to No. (34) are an integral part of these financial statements and should be read therewith. Translation Al Ezz Steel Rebars Company (An Egyptian Joint Stock Company) Consolidated Cash Flow Statement For the nine months ended 30 September 2006 For the nine For the nine months ended months ended 30/9/2006 30/9/2005 LE LE Cash Flows From Operating Activities Net profit for the period after minority interest 738 951 118 359 940 267 Adjustments to reconcile net profit to net cash provided by operating activities Adjustments of non cash items Depreciation of fixed assets 360 571 472 55 066 397 Amortization of other assets 245 009 958 947 Net losses/(gains) from investmens 5 992 030 ( 363 722 234) Deferred taxes 106 020 623 - Changes in minority interest 711 966 326 1 600 037 Foreign currency exchange differences losses/(gains) 3 130 761 ( 6 905 736) Amortization of bonds issuance discount 60 991 260 206 Provisions 1 484 000 - Unused provisions ( 51 000 000) - Revenue from sale of investments ( 435 758) - Capital gain ( 30 035) ( 33 002) 1 876 956 537 47 164 882 Changes in working capital Decrese/(increase) in inventory 29 081 166 ( 62 011 304) Decrease/(increase) in accounts and notes receivable 155 569 614 ( 46 805 210) (Increase) in suppliers - debit balances ( 2 286 168) ( 8 184 915) (Increase) in accrued from related parties ( 234 444 651) ( 63 196 247) Decrease/(increase) in debtors and other debit balances 97 203 917 ( 6 192 127) (Decrease) in suppliers and notes payable ( 334 140 319) ( 424 308) Increase in Accrued for related parties 3 490 694 3 568 855 (Decrease)/increase in creditors and other credit balances ( 192 984 590) 79 688 976 Used from provisions ( 12 319 363) - Net cash provided by/(used in) operating activities 1 386 126 837 ( 56 391 398) Cash Flows from Investing Activities Payments for purchase of fixed assets and projects under progress ( 94 934 320) ( 5 419 846) Proceeds from sale of fixed assets 60 475 358 002 Proceeds from sale of investments 1 310 518 282 213 015 Payments for fixed assets creditors - ( 1 196 739) Payments of installments of sales tax on machinery and equipment ( 2 239 848) ( 6 301 012) Proceeds from lending others 528 583 - Net cash (used in)/provided by investing activities ( 95 274 592) 269 653 420 Cash Flows from Financing Activities Increase in credit facilities 370 637 744 117 520 072 Payments of long term, short term loans and long term liabilities ( 658 719 839) ( 104 921 768) Decrease in long term liabilities ( 11 358) - Dividends distribution ( 515 956 262) - Net cash (used in)/provided by financing activities ( 804 049 715) 12 598 304 Net increase in cash and cash equivalents 486 802 530 225 860 326 Cash and cash equivalents at the beginning of the period 683 218 024 78 323 794 Cash and cash equivalents at the end of the period 1 170 020 554 304 184 120 (Refer to note no. 31) The accompanying notes from No. (1) to No. (34) are an integral part of these financial statements and should be read therewith. 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