Alfajar alalmmia campany

Refer to the attached financial statements then compute the following:

1. ROCE =

2. Current Ratio:

3. Quick Ratio (Acid Test Ratio):

4. Operating Cash Flow To Current Liabilities Ratio:

5. A\R Turnover:

6. Inventory Turnover:

7. Accounts Payable Turnover:

8. Interest Coverage Ratio:

9. Long- Term Debt Ratio

10. Debt/ Equity Ratio:

11. Long- Term Debt to Assets Ratio:

12. Interest Coverage Ratio:

13. Operating Cash Flow to Total Liabilities ratio:

14. Earnings Per Share (EPS):

15. Altmans Z-Score: (in the formula, set Market value/ Book value =1)

Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 2 Senant reporting Group Explosive manufacturing and Mini 30 June 30 Are 2020 2019 2020 2009 Grove w 20 June 2020 DE 30 2020 13:00 mm SIN GE 10.2016 . 2.151.0 . 3.200,00 21.049,90 Segment 14.00 . Over 3.0 595.505 1470241 12. . 3. 30 legen 70452 2. 1,417,167 1 3.1.00 WE 24 11 171.41 3.10 8.735 2.126, 47,75 20. Seneste MES 2. . 529. 5227 122 AL Due from maltad parties CHE . 7.00 27,43 1.521 2.138. RO 5. . 24 . 12 4.116.45 3.576 1 43 12.2000 29 IN 2.1 Outredare 1.00 10 0.00 2.63 14.41 650.7 Al Fajar Al Alamia Company SAOG and its subsidiaries Nates to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 12 Sept reporting Purent Company Explomat Un alle 30 June one 2010 2020 Eternal les - 100 une 2020 10 2006 2010 2010 2,154 2.0, 1.23 1. 7104 16 0.72 1,51 B. S. M35 3.57 1. Ovde France 18. 3. 331, 600 1141 SALN5 ette 11 H2H 23,20 4. 175.000 het te . Good SN 579.77 S41 SEIF . SU 45.50 41 422 13.00 RE Wo STAR | 14 2 Due to related partie MOSO 4. M Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 Expressed in Omani Rial) Grup Explomatic trading G 30 30 30 2000 2011 30 2019 2010 2019 LIPE 3,209 10 14 ESHE 12.16 TAN . Toaleve Tel.02 1 10 3.2.10 Tore 21 26. 14.00 ITUT 2.4 WON NO BA SZ Other income Finance 136.33 9901 M 2.1 ANG 10041 S CON CEWE CAU USD WE OS 16 M 1 211 ROSE 14 . 3 22 WED 1. 542, DI 7.10.15 2.1 NO NE Gol Duette partie Tot Serente 2, LMS . TS 3,521.729 5.05.09 27.4317 12.10 24. 222 ST 1.22 126.95 ZEL 1. 5 7. 22.222 3. . .. SM SEL SOL 5461 LA 14. H. Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 Expressed in Omani Rial) Segment reported Parent Con re 2000 2020 10 2019 2019 RE 1.457. ws Total 1 INT 4000 10 OM 11.01 12 To 2. 35 1 LIN . IN 1. Other . THE IST ch 11. 147 131, WEN FRED 12.05. 2.54 5.7. CS 37. 17. 1 DE IN 16.01 : 7.41 SI 2. W 1. 114 45 1.000 MA HON TE WIB Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 (Expressed in Omani Rial) 42 Segment reporting The Group has three reportable segments, which are the Group's strategic business units. For each of the strategic business units, the Group's management reviews internal management reports on a regular basis. The following summary describes the operations in each of the Group's reportable segments: (a) Explosives manufacturing and trading: includes manufacturing and sale of explosives b) Mining: includes sale of gabbro rock (c) Drilling and blasting: Includes drilling and blasting services Performance is measured based on segment profit before tax, as included in the internal management reports that are reviewed by the Group's management. Segment profit is used to measure performance as the management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries Company SAOG and its subsidiaries ate and consolidated financial statements for the year ended 30 June 2020 ani Rial) 50 of 53 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 J. (Expressed in Omani Rial) 41 Notes supporting the separate and consolidated statement of cash flows (continued) Group (2018-2019) Non-cash changes Cash Foreign Fair value inflows/out Acquisition exchange Particulars 1 July 2018 flows) movement changes 30 June 2019 Long-term loans 5,818.002 (1.125.860) 4.692.142 Finance leases 247,031 [195,624) 51,407 Bank borrowings 5,159,996 2,493,830 7,653,826 Dividends paid (607,687) Finance costs (1.059,646) Parent Company (2019-2020) Non-cash changes Cash Foreign inflows/lout Fair value Acquisition exchange Particulars 1 July 2019 flows) movement changes 30 June 2020 Long-term loans 3,170,255 2,901,432 6,071,687 Finance leases 50,830 2,249,578 2,300,408 Bank borrowings 1,818,851 732,609 2.551,460 Lease Liabilities 123.967 (15,620) 108,347 Dividends paid (246,651) Finance costs 1647.172) Parent Company (2018-2019) Non-cash changes Cash Foreign inflows/(out Acquisition Fair value exchange Particulars 1 July 2018 changes flows) movement 30 June 2019 Long-term loans 4,640,315 (1,470,060) 3,170,255 Bank borrowings 1,301,202 517,649 1,818,851 Dividends paid (493,303) Finance costs (486,504) 62 50 9:56 PM @ 78% Done 6_AFAI_Notes_09002020_29_b21... 49 of 53 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 304 Expressed in Omani Rial) 40 Subsequent events continued UAE entities Subsequent to the year end the World Health Organisation declared the novel Coronavirus (COVID-19) a global pandemic and recommended contenment and mitigation mesures worldwide. In accordance with the guidelines sued by the Supreme Committee dealing with COVID-19 in the wall entities other than those dealing with essential services) had to partially suspend their operations from 23 March 2020 as part of the precautionary measures aimed to limit the spread of the COVID-19 in the UL. This has resulted in a real slow down of the overall market in the CE. The impact of such slow down on the operational results and financial position of the Group for the year 2020 cannot be ascertained There were no other events, except for the above mentioned occurring subsequent to 30 June 2020 and before the date of the report that are expected to have a significant impact on these separate and consolidated financial statements 41 Notes supporting the separate and consolidated statement of cash flows Non-Cash transactions from financing activities shown in the reconcitation of tabtitles from financing transactions is as follows: Group (2014-2020) Non-cash changes Cash Foreign Fair value | inflow out Acquisition exchange Particulars July 2019 flow movement changes 30 June 2020 Long-term an 4,692.142 3,821.164 8.516,006 50,830 2.249.578 2.100.400 7,653,826 2.120.142 9.774.668 Bank borrowing Leave Habits Dividends paid Finance 202.22 03.11 208,344 25. 1.232.2011 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 31 (Expressed in Omani Rial) Al Fajar Al Alamia Company SAOG and its subsidiaries Separate and consolidated statement of cash flows for the year ended 30 June 2020 (Expressed in Omani Rials) Parent Group Company Group Company 30 June 30 June 30 June 30 June Notes 2020 2020 2019 2019 Operating activities Net profit before tax for the year 162.59 244,026 2.019.00 481,371 Austments for Depreciation of property, plant and equipment 7 1,055,850 125,757 944,870 164,313 Amortisation of intangibles 1 35,581 1.505 16,174 1,300 Profit on sale of property, plant and equipment 27 5.2001 Write-off of property, plant and equipment 21.131 Amortisation of right-of-use set 9 40,056 19,163 Share of tons from investment an associate 12 6,00 14, 14.39 Provision for obsolete and slow moving mentories 12.222 9,101 17.040 12.9 Provision for expected credit losses on trade receivables 30 85,333 230,253 100,99 Reversal of excess ECL provision on trade receivables Note 14 27 1496.005) 13.219 1104,168) Reversal of BCL provision on related party receivable 27 21,146) (21.145 Finance costs 31 1,287,707 67,172 1,031,796 436,504 Provision for employees benefit liabilities 23 134,401 53,298 120,384 27,193 Operating profit before working capital changes 2,328.139 4289.805 1.289,075 Working capital changes Inventories 1492,66) 164,741) (103,40 Trade and other receivables 2.484,902) (795,757) 2,011.08 201,96 Trade and other payables 78.004 (1.599.619) 1.667,869 2.159,220 Cash generated from/used in operating activities 573,214) 11.287.472) 4,041,125 3.54,861 Les employees benefitabilities paid (23.428) 14.605) 47.2551 18.805 Les income tax puid 32 230,914 (235.225 122.3311 Het cash (used in generated from operating activities 27.6261 11.456.258) 3.758.745 Al Fajar Al Alamia Company SAOG and its subsidiaries Separate and consolidated statement of cash flows for the year ended 30 June 2020 (Expressed in Omani Rials) Parent Company 30 June 2020 Parent Company 30 June 2019 Group 30 June 2019 30 June 2020 Investing activities Purchase of property, plant and equipment 7 2.202.697) 195,765) (2,079,693 (235,545) 1 of 1 1 Alamia Company SAOG and its subsidiaries and consolidated statement of profit or loss and other comprehensive income for the year ended 30 June 2020 (Expressed in Omani Rials) Group 30 June 2020 Parent Company 30 June 2020 Group 30 June 2019 Parent Company 30 June 2019 Income Revenue from contracts with customers Cont of revenue Gross pront 25 16,224,720 26 (13.461,315) 2.763,405 5.397,030 20,245,116 3.681.006) (15.654,530) 1,716,024 4,590,566 5,710.94 0.7091641 1,941,810 27 324,725 30.790 302.340 81.402 Other income Reversal of exces ECL provision on trade receivable Note 14 1.219 486.00 3.584,135 1,800,033 104.140 4,997,094 2,021 212 1427.9331 (305,691) 11,154,104) (246.885) (295,374) 257.481) 191.594) 1421,772) 1981.961) 302.6011 (407,141) 217,0541 35.859 (11,8111 Expenses Salaries and other related staff coms 28 Selling and distribution expenses 29 General and administrative expenses 30 Depreciation of property, plant and equipment 7 Amortisation of intangible assets 3 Amortisation of right-of- Provision for ECL on trade receivables (Note 14 Property, plant and equipment written off 7 (53.395) 14.907) (19,163) 188,3331 230,25) (1009) (23.131) (2.127,7491 052.7) 2,166.20) (1.040,941) Profit from operation 1.456.185 947,297 2.830.847 982 271 11.287,707) 31 10 1647,172) 11,031,796) 214.05 Finance costs net) Profit on transfer of a subsidiary Share of loss from investimenti associate Profit before tax for the year Income tax release/expensel 12 16.00 162.579 114.96 2,019,060 (14.1961 481,371 24,026 12 37.80 643.749) (217.155) 200,183 250272 1.81 705 212270 Net profit after tax and total comprehensive income for the year Basic and diluted earnings per share } 0.004 0.005 0.037 0.00 50 9:44 PM @ 81% Done 2_AFAL_Balance Sheet_09002020... Al Fajar Al Alamia Company SAOG and its subsidiaries Separate and consolidated statement of financial position as at 30 June 2020 (Expressed in Omani Rials) 2000 30. 2012 2020 2012 current 1 . . 7:30, 100 TO HY IN 11 22.11 SWT IM 237, M LU . 08 Total LIVE E S' TML 2.1 12. 1,396.71 15 Cachadh Total current 17.07.10 COUNTY NELAIS Sweder contre 11, 4. 1, INSI 13, 11.30, WW US S. Red 5 3.7. 20,706, ME 1.479,453 2.77 Mont 7,0,1 . 110, 0.00 . 4,100.00 UL 5, 70 30.06.10 w Current rebrote Current periodo Current portion of Curention 17 22 20 21 12.11 . 1049 3.343, . 14 11.40 43, 31.57 RIN 230 14. 20 TON 12 IT 122 0.113 The common perd wordt Faidavi 1 of 53 nia Company SAOG and its subsidiaries separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 1 Legal status and principal activities Al Fajar Al Alami Company SAOG("the Parent Company) is a public joint stock company registered with the Ministry of Commerce and Industry in accordance with the provisions of the Commercial Companies Law 1974, as amended, of the Sultanate of Oman. The Parent company's principal activities are manufacturing and sale of explosives and trading of related accessories. The Parent Company is heavily reliant on related parties who constitute 54% (30 June 2019: 84%) of the total revenue for the year. These separate and consolidated financial statements include the result of operations and assets and tabiities of the Parent Company and its subsidiaries (together referred to as the Group The Parent company's principal place of business is located in the Sultanate of Oman. These separate and consolidated financial statements were approved for issue by the Board of Directors on 26 August 2020, 2 Structure of the Group The structure of the Group is as follows: Country of Effective ownership Name of the subsidiary incorporation Interest Principal activities 30 June 30 June 2020 2019 Technical Services and Rock Sultanate of 100% 100% Driling, tanstilt and leveling Blasting LLC (Techrock) Oman works, miring and marketing of gabbro rock Al Andalos for Rock Blasting Sultanate of 100% 100% Rock blasting services, earth LLC Al Andalos) Oman works services and other similar contracting services Al Musdaq Modem Trading LLC Sultanate of 100% 100% Drilling and blasting services (Al Musdaq) c) Oman Technical Holdings Limited United Arab 100 100% Investment holding activities (THL) (di Emirates 100% 100% Technical Drilling and Blasting United Arab Company LLC (TDS) Gel Emirates Desiling, digging and levelling ground, carrying out blasting. exploding operations for chil contract works and demolitions 1005 Awam Minerals LLC Awam) in Sultanate of Oman Gypsum mining Geodynamics Mideast LLC Geodynamics) United Arab Emirates Manufacturing and sale of explosives 13 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 2 Structure of the Group (continued) (a) Techrock is a 100% subsidiary with effect from 1 July 2010, when the Parent Company acquired 100% of the 50 9:52 PM @ 79% Done 5_AFAI_StockHolderEquity_0900... 2 of 2 G and is turies ted statement of changes in sareerseguity for the year ended 30 June 2020 2.AT 25. LE 34 119 0.000 Al Far Allan Company SAG and its subsidiaries Seperate and coated statement of changes in stare de equity for the year ended June 2020 prested in Omah) S. w TH 1 2 OS SPF S ENE LE W1 8137 Son Cash generated from/used in operating activities es benefit liabilities paid 2 of 2 tr pald din penerated from operating activities (573,214 (23,428) 230,914 11.287 672) HDS 1941.985) 4.04 125 147.2553 1215,1251 3.546,883 IROS 1122.3333 32 827,626) 11.634258) 1.752.745 1415,245 Al Fajar Al Alamia Company SAOG and its subsidiaries Separate and consolidated statement of cash flows for the year ended 30 June 2020 (Expressed in Omani Rials) Group 30 June 2020 Parent Company 30 June 2020 Group 30 June 2019 Parent Company 30 June 2019 Notes 7 2.202.097) 195.765) 2,079.493) (235,541) 7 8 10.500 (3.522,223) (110,221) 11,3781 Investing activities Purchase of property, plant and equipment Proceeds from sale of property plant and equipment Cost of acquisition of intangible assets Cost of acquisition of investment in sociale Costs paid for operating nights for Cost of acquisition of investment in a subsidiary Net movement in debt instruments at amortised cost Het cash used in investing activities 1750,000 750,000 12 18,634 3.634) 1132.000 132,000 11.082.925) 15 0338431 1689.630 06.061,517) 14.187.124) 3,562,298 11,118.9191 2.493.00 Financing activities Net movement in long-term loans 3.23.864 2.901,32 0.125.000 11,470.000 Net movement in finance teases 2,249,578 2.300,00 1195.624) Net movement ibank borrowing 2.120.84 732.009 517,649 Lease liabilities peld principal 033.983) (15.620) Dividends paid (305,9791 (246.651) 1607,687 493,303) Finance costspaid 31 (1.287,707) 1647.172) (1.031.796 1436,504 Met cash from used in financing activities 6.566.616 5,025.007 467,137 1,932,213 Net decrease increase in cash and cash equivalents (322.527) 1596,575) (2706903 364,108 Cash and cash equivalents, beginning of the year 2.544,053) 11.205.854 (2,273,363) 1,549,42 Cash and cash equivalents, and of the year 34 2.866, (1.302.429) 2.544,05) (1,205,554 Disclosure as required by S7 Statement of Cash Pows has been shown in Noted to the sease and consolidated financial statements. 12 15 4 of 53 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) Adoption of new and revised IFRS (Continued Standards, amendments and interpretations effective and adopted in the year 2019-2020 continued IFRS 16-Lease continued (1) Leme Hability continued) The lease ability is measured at amortised cost using the effective interest method is remeasured when there is a change in future lease payments arising from a change in an indes or rate. If there is a change in the Parent Company's and the Group's estimate of the amount expected to be payable under a residual value guarantee, or of the Parent company and the Group changes its assessment of whether it will exerche purchase, extension or termination option. When the Inseliability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-usest, or is recorded in profit or loss if the carrying amount of the right of use miset has been reduced to zero. Presentation and disclosure The Parent company and the Group presents right-of-use assets and tease buities in the separate and consolidated statement of financial position Short-term leases and feases of low value iets The Group has elected not to recognise right of use assets and lease abilities for short term leases of assets that have a fease term of 12 months or less and seases of low-value assets. The Parent Company and the Group recognises the base payments associated with these lesses as an expense on a straight-line basis over the lease term. Application of RS 16. Leases The Parent Company and the Group has applied IFRS 16 using a modified retrospective method effective from 1 y 2019. Accordingly, the comparative figures in the financial statements for the year ended 30 June 2019 which have been recognised in accordance with us 17 and IFRIC 4. SIC 15 and SiC 27 have not been adjusted On adoption of IFRS 16, the Parent company and the Group has recognised leaseliabilities in relation to leases which had previously been classified as operating lases under the principles of S 17. These tiabilities are measured at the present value of the remaining tease payments, discounted using the lessee's Incremental borrowing rate as at 1 July 2019. The following is the reconciliation of total operating lease commitments at 30 June 2019 to the lease tibilities recognised on 1 July 2019 Parent Group Company Amount in RO Amount in RO 251,76 Total operating lease commitments at 30 June 2019 Discounted using incremental borrowing rate Total operating lease liability recognised under FRS 16 at 1 July 2019 19.49 168.445 (24.4811 123,97 Right-of-use asset and corresponding leade liability have been recognised for the Parent company's and the Groups long-term land leases ranging for a period from 5 years to 25 years, discounted using an incremental borrowing rate of 5.79% Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 4 Adoption of new and revised IFRS (Continued) Amendments and interpretations issued and effective in the year 2019-2020 but not relevant Standard or Interpretation IFRS 16 Title Effective for annual periods beginning on or after 1 January 2019 Leases 14 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial 4 Adoption of new and revised IFRS (continued) Standards effective and adopted in the year 2019-2020 continued IFRS 16. Leases IAS 17 Leases has been replaced by FR 16 - Lesses retrospectively from 1 July 2019. Until the financial year 2018, leases were classified as either finance or operating lesses. Payments made under operating leases thet of any incentives received from the lessor) were charged to profit or loss on a straight-line basis over the period of the tense From 1 January 2019, the lessee is required to recognise right-of-use asset and a corresponding lease tability at the date at which the leased asset is available for use by the Parent Company and the Group. Each lease payment is allocated between the lease ability and finance costs. The finance costs are charged to profit or loss over the lense period so as to produce a constant periodic rate of interest on the remaining balance of the ability for each period. The right-of-use asset is depreciated over the shorter of the assets useful life and the lease term on a straight-tine basis. The Parent Company and the Group has implemented FRS 16 from 1 July 2019 and, therefore, the Parent Company and the Group has recognised lees in the separate and consolidated statement of Financial position as at 1 July 2019. In addition, the Parent company and the Group has also decided to measure right of-use assets by reference to the measurement of the lease ability on that date. Accordingly. in accordance with the transition provisions of IFRS 16, instead of recognising an operating expense for its operating lease arrangements, the Parent company and the Group has recognised finance costs on its tense fiabilities and mortisation on its right-of-use assets. This has resulted in an increase in reported earnings before interest, depreciation and tax by the amount of its operating tense costs. Right-of-use (ROU) asset The Parent company and the Group recognises a right-of-use asset and a lease liability at the lease Commencement date. The ght-of-use of asset snitially measured at cost, which comprises the Initial amount of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any teine incentive received The right-of-use asset is subsequently amorted using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-se assets are determined on the same basis of contractual life of the lease. In addition, the right-of-use asset is periodically reduced by impairment losses of any, and adjusted for certain re-ineasurements of the lease libility Amortisation is calculated on a straight line basis over the estimated useful lives of the right of use assets Lease liability The lease initially measured at the present value of the lease payments that are not paid at the Commencement date, discounted using the interest rate implicit in the lease or if that rate cannot be readily determined, the Parent Company and the Group's incremental borrowing rate. Lease payments included in the measurement of the lease ability comprising foed payments, including in substance fixed payments 15 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Geodynamics Emirates 13 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 2 Structure of the Group (continued) (aTechrock is 100% subsidiary with effect from 1 July 2010, when the Parent Company acquired 100% of the share capital of Techrock DI Al Andalossa 100% subsidiary of the Parent company through Techrock. It was acquired by Techrock on 1 September 2010 (c) Al Misdag is a 100% subsidiary of the Parent company. It was acquired on 1 January 2013 (d) Th. registered Dubal International Finance Centre (DIFC) was formed on April 2014. It is a subsidiary of the Parent Company through Techrock. fel te is a subsidiary of the Parent Company through THL It is registered in Dubai, UAE as a limited liability company in During the year, the Parent company acquired Awam which has the mining rights of gypsum reserves in the Sultanate of Oman Note 10 lei (gl During the previous year ended 30 June 2019. Geodynamics legal status has been changed from a limited liability company to a sole proprietorship establishment with Fujairah Holdings LLC owning 100% of Geodynamics. Hence, the Parent company does not excercise control over Geodynamics and therefore, is not consolidated with that of the Parent Company IN The Parent Company holds 99% of share capital in the subsidiaries and remaining 15 share capital has been held for the beneficial Interest of the Parent Company and hence, the results of the subsidiaries have been consolidated without recognising non-controlling interest. 3 Basis of preparation (a) Basis of presentation The separate and consolidated financial statements have been prepared under the historical cost convention and going concern assumption, modified for certain assets and abilities which are stated at their fair values as required by the IFRS. The preparation of separate and consolidated financial statements is in conformity with IFRS that requires the use of certain critical accounting estimates. It also requires management to exercise judgment in the process of applying the Parent company's and the Group's accounting policies Functional currency These separate financial statements are presented in Omani Rial (RO) which is the functional and reporting currency of the Company 4 Adoption of new and revised RS improvementsamendments to IFRS/AS contained numerous amendments to IFRS/AS that the ASB considers non urgent but necessary. "Improvements to IFRS comprise amendments that result in accounting changes to presentation, recognition or measurement purposes, as well as terminology or editorial amendments related to a variety of individunt IFRS standards. The amendments are effective for the Parent company's and Group's future accounting period with earlier adoption permitted Standards effective and adopted in the year 2019-2020 The following new standards, amendment to existing standards or interpretations to published standards are mandatory for the first time for the financial year beginning 1 Idy 2019 and have been adopted in the preparation of the separate and consolidated financial statements: Standard or Effective for a periods Interpretation Title beginning on or after IFRS 16 Leases 1 January 2019 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 une 2020 were no business acquisitions during the year 7 of 53 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) Adoption of new and revised IFRS Continued Amendments and interpretations issued and effective in the year 2019 2020 but not relevant continued) IFRS 11 Joint Arrangements A party that participates in, but does not have joint control of a joint operation might obtain joint control of the joint operation in which the activity of the joint operation constitutes a business as defined in FRS 3. The amendments clarify that the previously held interests in that joint operation we not remesured. The Parent company and the Group applies those amendments to transactions in which it obtain Joint control on or after the beginning of the first annual reporting period beginning on or after 1 July 2019, with early application permitted These amendments had no impact on the separate and consolidated financial statements as there a no transaction where a joint control is obtained IFRIC 2) Uncertainty over Income Tax Treatments The Interpretation addresses the accounting for income taxes when tax treatments involve uncertainty that affects the application of IAS 12 Income Taxes. It does not apply to taxes or levies outside the scope of 12. nor does it specifically include requirements relating to interest and penalties associated with uncertain tax treatments. The interpretation specifically addresses the following whether the Parent Company and the Group considers uncertain tax treatments separately the assumptions the parent company and the Group makes about the examination of tax treatments by taxation authorities how Parent company and the Group determines taxable profit (taxtos, tax bases, unused tax lases unused tax credits and tax rates, and how the Parent Company and the Group considers changes in facts and circumstances The Parent company and the Group has to determine whether to consider each uncertain tax treatment separately or together with one or more uncertain tax treatments. The approach that better predicts the resolution of the uncertainty needs to be followed These amendments had no impact on the separate and consolidated financial statements as there are no uncertainties on the income tax treatment and tax treatment followed by the Parent Company and the Group has been accepted by the taxation authorities in previous years. Standards, amendments and interpretations issued but not yet effective in the year 2019-2020 The following new amended accounting standards and interpretations have been issued, but are not mandatory for the financial year ended 30 June 2020. They have not been adopted in preparing the separate and consolidated financial statements for the year ended 30 June 2020 and will not have an effect on the Parent Company's and the Group's future separate and consolidated financial statements. Standard or Effective for annual periods Interpretation beginning on or after IFRS 17 Insurance Contracts 1 January 2021 IFRS 17 Insurance Contracts Since the Parent company and the Group does not enter into insurance contracts, these amendments are not applicable to the Parent Company and the Group Early adoption of amendments or standards in the year 2019-2020 The Parent Company and the Group did not early adopt any new or amended standards in the year ended 30 June 2020 Title 19 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 6 of 53 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 4 Adoption of new and revised IFRS (Continued) Amendments and interpretation issued and effective in the year 2019-2020 but not relevant continued) IAS 21 Borrowing Costs The amendments clarify that the Parent Company and the Group treats as part of general borrowing my borrowing originally made to develop a qualifying asset when substantially all of the activities necessary to prepare that asset for its intended use or sale are complete The Parent company and the Group applies the amendments to borrowing costs incurred on or after the beginning of the annual reporting period in which the Parent company and the Group first applies those amendments. The Parent company and the Group applies those amendments for annual reporting periods beginning on or after 1 July 2019, with early application permitted. Since the Parent Company and the Group's current practice is line with these amendments, they do not ave any impact on the separate and consolidated financial statements. IAS 28 "Investments in Associates and Joint Ventures The amendments clarity that the Parent Company and the Group applies IFRS 9 to long-term interests an associate or joint venture to which the equity method is not applied but that, in substance, form part of the net investment in the associate or joint venture long-term interests. This clarification is relevant because it implies that the expected credit loss model in FRS 9 applies to such long-term interests. The amendments also clarified that, in applying IFRS 9. the Parent company and the Group does not the account of any losses of the associate or joint venture, or any impairment losses on the net investment, recognised as adjustments to the net investment in the associate or joint venture that arise from applying AS 28 Investments in Associates and Joint Ventures These amendments did not have any impact on the separate and consolidated financial statements as the Parent company and the Group does not have long-term interests in any associate and joint venture. IFRS 9 Financial instruments Under IRS , a debt instrument can be measured at amortised cost or at fair value through other comprehensive income, provided that the contractual cash flows are solely payments of principal and interest on the principal amount outstanding the SPPI criterion) and the instrument is held within the appropriate business model for that classification. The amendments to FRS 9 clarify that a financial asset passes the SPP criterion regardless of an event of circunstance that causes the early termination of the contract and irrespective of which party pays or receives reasonable compensation for the early termination of the contract These amendments did not have any impact on the separate and consolidated financial statements IFRS 3 Business Combinations The amendments clarify that, when the Parent Company and the Group obtains control of a business that is a joint operation. It applies the requirements for a business combination achieved in stage, including remeasuring previously held interests in the assets and liabilities of the joint operation at fair value. In doing 10, the acquirer remesures its entire previously held interest in the joint operation The Parent company and the Group applies those amendments to business combinations for which the acouisition dates on or after the beginning of the first annual reporting period beginning on or after 1 2019, with earty application permitted These amendments did not have any impact on the separate and consolidated financial statements as there were no business acquisitions during the year. 18 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 4 Adoption of new and revised IFRS (Continued Amendments and interpretations issued and effective in the year 2019-2020 but not relevant continued) borrowing rate of 5.75% 5 of 53 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) Adoption of new and revised IFRS (Continued Amendments and interpretations issued and effective in the year 2019-2020 but not relevant The following new amendments to exiting standarch and interpretations to published standards are mandatory for accounting period beginning on or after 1 y 2019 or subsequent periodu Standard or Effective for annual periods Interpretation Title beginning on er after LAS 12 Income Taxes 1 January 2019 IAS 19 Employee Benefits 1 January 2019 LAS 23 Borrowing Costs 1 January 2019 US 28 Investments in Associates and Joint Ventures 1 January 2019 IFRS 9 Financial instruments 1 January 2019 IFRS) Business Combinations January 2019 IFRS 11 Joint Arrangements 1 January 2017 IFRIC 23 Uncertainty over Income Tax Treatments 1 January 2019 IAS 12 Income Taxes The amendments clarify that the income tax consequences of dividends are linked more directly to past transactions or events that generated distributable profits than to distributions to owners. Therefore, the Parent Company and the Group recognises the income tax comequences of dividendes in profit or loss, other comprehensive income or equity according to where it originally recognised those post transaction or events. The Parent Company and the Group applies the amendments for annual reporting periods beginning on or after 1 July 2019, with early application permitted. When the Parent Company and the Group first applies those amendments, it applies them to the income tax consequences of dividends recognised on or after the beginning of the earliest comparative period Since the Parent Company's and the Group's current practice in line with these amendments, they had no impact on the separate and consolidated financial statements. IAS 19 Employee lenefits The amendments to US 19 address the accounting when a plan amendment, curtallment or settlement occur during a reporting period. The amendments specify that when a plan amendment, Curtaiment or settlement occur during the annual reporting period, the Parent Company and the Group is required to determine the current service cost for the remainder of the period after the plan amendment, curtainment or settlement, using the actuarial assumptions used to remeasure the net defined benefit tiability asset) reflecting the benefits offered under the plan and the plan assets after that event. The Parent Company and the Groups also required to determine the net interest for the remainder of the period after the plan amendment curtaiment or settlement using the net defined benefitability asset reflecting the benefits offered under the plan and the plan assets after that event, and the discount rate used to remature that net defined benefit liability asset). These amendments did not have any mpact on the separate and consolidated financial statements of the Parent Company and the Group, as it did not have any planned amendments, curtallments, or settlements during the year 17 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 11 50 9:54 PM @ 79% Done 6_AFAI_Notes_09002020_29_b21... Tools and equipment Motor vehicles vent furniture and futures 15-33.33 25-33.33 15 33.33 21 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) Summary of significant accounting policies continued c) Property, plant and equipment continued Expenditure incurred to replace a component of an item of property, plant and equipment that is accounted for paratety capitated and the carrying amount of the component that is replaced with off. Other tregut expenditure is capitated only when it increases future economic benefits of the related item of furniture and equipment. All other expenditure is recognised in the separate and consolidated statement of profit or low as the experts incurred. 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 to arising on derecognition of the asset calculated as the difference between the responsal proceeds and the carrying amount of the aut included in the separate and consolidated statement of profit or low in the year the asset is derecognised Gains and foes on disposal of plant and equipment are determined by reference to their curry out and are taken into account in determining net profit or los When significant parts of plant and talent we required to be replaced with the Company recognises such parts as individual assets with specific use tives and depreciation, respectively. Likewise when a major inspection is performed. Is cost is recognised in the carrying amount of the plant and equipment a replacement the recognition criteria are satisfied All other repairs and maintenance costs are recognised in the statement of profit or low as incurred Id Capital work-in-progress Expenditure incurred on the construction of new facilities prior to the commencement of commercial use is capitalised. Capital work in progress is transferred to property, plant and equipment and depreciated at the time of commencement of the commercial lel Intangible assets Intangible asets comprise mining rights, stripping activity asset and computer software, which are carried at cost les accumulated amortisation Amortisation is calculated using the straight line method to write off the cost of the stripping activity asset and computer software over their estimated useful lives of years and 4 years, respectively. Mining nights are mortised based on the actual extraction of ppm from the estimated reserves. The mortisation experieon Intangible iets is recognised in the separate and consolidated statement of profit or los The Company at the stage of either each mine exploration er under development to determine when a mine moves into the production phase, this being when the mines substantially complete and ready for its Intended use. The criter used to as the start date determined based on the unique nature of each mine exploration and development, such as the complety of the project and is location. The Company considers various relevant criteria to assess when the production phase is considered to have commenced. A this point, all related amounts we related from exploration and development costs to stripping activity asset The stripping activity asset capitalised includes amount spent until the time the mines are ready for commercial production, including directly attributable overhead costs. The roping activity anet amortised on a sitematic basis over the estimated useful life of the respective mines, which meally ranges between 2 and 3 years 22 Al Fajar Al Alamia Company SAOG and its subsidiaries 20 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 5 Summary of significant accounting policies continued) (a) Consolidation continued) Subsidiaries (continued) Transactions with non-controlling interests that do not result in loss of control we accounted for as equity transactions that is, as transactions with the owners in their capacity as owners. The difference between fair value of any comideration paid and the relevant share oured of the carrying value of net sets of the subsidiary is recorded in comodidated shareholders equity. Gains or lowes on disposal to non-controlling interests are also recorded in consolidated shareholders equity When the Group cesses to have control, any retained interest in the entity in re-measured to its fair value the date when control fost with the change in carrying amount recognised in profit or loss. The far value Is the initial carrying amount for the purposes of subsequently accounting for the retained interest an associate, joint venture or financial asset. 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. This may mean that amounts previously recognised in other comprehensive income are reclassified to profit or loss by Investment in an associate Associate is an entity over which the Parent Company and the Group has an interest of between 2015 and so and has significant influence and which is neither a subsidiary noroint venture. The separate and consolidated financial statements include the Parent company's and the Group's share of the total recognised gains and losses of the associates on an equity accounted basis, from the date that significant influence commences until the date that significant influence censes. When the Parent company's and the Group's share of losses exceeds its interest in an associate, the investment's carrying amount is reduced to it and recognition of further losses is discontinued, except to the extent that the Parent Company and the Group has incurred legal or contructive obligations or made payments on behalf of the sociale All purchases and sales of lovestment in associates are recognised on the trade date, which is the date that the Parent company and the Group commits to purchase or sell the asset. Cost of purchase includes transaction costs. Investments are derecognised when the right to receive cash flow from the investments has expired or has been transferred and the Parent company and the Group has transferred substantially all risks and rewards of ownership Dividends received from the associate is reduced from the carrying value of the investment cProperty, plant and equipment Property, plant and equipment are stated at historical cost less accumulated depreciation and any impairment in value. Cost Includes all costs directly attributable to bringing the set to working condition for their intended use Depreciation is calculated in accordance with the straight-line method to write-off the cost of each asset to its estimated residual value over its economic life. Depreciation has been calculated from the date of acquisition at the following rates Description per annum Buildings 5-20 Plant and machinery 6.67.25 Portable magazines 16.67.20 Storage and Caravans 15-16.67 Tools and equipment 15-33.33 Motor vehicles Office equipment, furniture and fixtures 15-33.33 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 5 Summary of significant accounting policies continued) c) Property, plant and equipment continued Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 5 Summary of significant accounting policies A summary of the significant accounting policies adopted in the preparation of these separate and consolidated financial statements is set out below. These policies have been consistently applied to all the years presented, unless stated otherwise (n) Consolidation c) Basis of consolidation The consolidated financial statements incorporate the separate financial statements of the Parent Company and its subsidiaries from the date that control effectively commenced until the date that control effectively ceaed. Control is achieved when the Parent company has the power to gover the financial and operating policies of an entity so as to obtain benefits from its activities All Intra group balances, income and expenses and unrealised gain and tosses resulting from intra group transactions are eliminated Accounting policies of the subsidiaries have been stigned to ensure consistency with the policies adopted by the Parent Company and the Group, HI) Subsidiaries The Parent Company controls an entity when it 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 over the entity A subsidiary is an entity in which the company was more than one-half of the voting power of exercises control. In the separate and consolidated financial statements, the investment in a subsidiary is carried at cost less impairment loss. Impairment losses are recognised in the profit or loss. The existence and effect of potential voting rights that are currently exercisable or convertible are considered when assessing whether the Group controis another entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are de consolidated from the date that control ceases The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition is measured as the fair value of the assets given, equity instruments sued and Babilities incurred or assumed at the date of exchange, plus costs directly attributable to the acquisition Identifiable assets acquired and abilities and contingent liabilities asumed in a business combination are measured initially at their fair values at the acquisition date, irrespective of the extent of any minority interest. The excess of the cost of uition over the fair value of the Group's share of the identifiable et assets acquired is recorded as goodwill. If the business combinations achieved in stages, the acquisition date carrying value of the acquirer's previously held equity interest in the acquires re-measured to fair value at the acquisition date any gains or losses arising from such remeasurement are recognised in the consolidated statement of profit or los 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 either in profit or loss or as a charge to other comprehensive income. Contingent consideration that is classified as equity is not re-measured, and its subsequent settlement is accounted for within equity Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 5 Summary of significant accounting policies continued) ta) Consolidation continued) m) Subsidiaries continued) 50 9:54 PM @ 79% Done 6_AFAI_Notes_09002020_29_b21... 13 of 53 Al Fajar Al Alamia Company SADG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 5 Summary of significant accounting policies (continued Financial instruments continued A Financial assets continued Im Impairment of financial sets continued) Trade receivables are of a short duration, normally less than 12 months and hence the loss allowance measured as lifetime ECL does not differ from that measured as 12 month EOL. The Parent Company and the Group uses the practical expedient informeaturing ECL for trade receivables using printing matrix based on ageing of the trade receivables. The Parent Company and the Groupes storical experience and derived loss rates based on the past twee months and adjust the historical loss rates to reflect the information about current conditions and reasonable and supportable forecasts of future economic conditions. The latestiller based on the Ageing of the amounts that are past due and we penerally higher for those with the higher ageing Income recognition Interest income For all financial instruments measured amored cost and interest-bearing financie, interest Income is recognised using the EIR, which is the rate that decounts the estimated future cash receipts through the expected one of the financial Instrument or a shorter period, where appropriate to the net Carrying amount of the fact When a fan and receivable impaired, the Parent company and the Group reduces the carrying amount its recoverable amount being the estimated future cash flow discounted at the original of the instrument, and continue winding the discount as interest Income Interest income on paired financial ist is recognised using the orignal OR. B) Financial abilities The Parent Company and the Group determines the classification of its financial abities at it recognition. The classification depench on the business model for manage the Financial tables and the contractual terms of the cash flows. 0 Classification The financial abilities we classified in the following measurement categories: ay those to be measured as financial tablities at fair value through profit or loss; and b) those to be mesured at amortised.com 0 Measurement All financial abilities are recognised initially fair value Financial abilities accounted at morted cost like borrowings are accounted at the far value determined based on the EiRafter considering the directly Attributable traction cost The Parent Company and the Group clasifies financial abilities subsequently measured at amorthed cost, except for financial abilities at fair value through profit or loss. Such liabuities, including derivatives that are abilities, and begantly red at fair value The ER method calculates the amortised cost of a debt instrument by allocating interest charged over the relevant El period. The Bir is the rate that eactly discount estimated future cash outflows including fees and points paid or received that form an integral part of the EIR, transaction costs and other premium or discounts through the expected Ufe of the debt instrument, or where appropriate a shorter period, to the net carry amount on til recognition. This category generally applies to borrowings, trade payables, etc. Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 50 9:54 PM @ 79% Done 6_AFAI_Notes_09002020_29_b21... 23 12 of 53 Al Fajar Al Alamia Company SAOG and its subsidiaries Notes to the separate and consolidated financial statements for the year ended 30 June 2020 (Expressed in Omani Rial) 5 Summary of significant accounting policies continued 1) Financial instruments continued)