Case study 4: RIP Company SAOG (the "Company) is an Omani joint stock company registered under the Commercial Companies Law of the Sultanate of Oman. The registered address, principal office and the manufacturing facility is located at Muscat, Sultanate of Oman. The Company's shares are listed in the Muscat Securities Market. The principal activities of Company are the manufacture and sale of Lathe Agriculture Machinery products including associated works. The commercial operations of the company in May 1999. The given below are the details of the balances as at the end of the year 2019: The revenues for the year amounted to RO 98,314,618 The Cost of turnover included Cost of materials consumed RO 80,082,563, Direct labour RO 3,526,466, and Other direct expenses RO 1,256,774 The deferred tax liability of the company amounted to RO 925,014 and Staff end of service benefits RO 122,161 The company have taken a Term Loan from Bank Muscat which had an outstanding balance of RO 8,002,502. The current portion of such loan amounted to RO 2,000,000 and the remaining is non- current The company also has an outstanding balance of term loan against property of RO 21,995,043. Towards the end of the year the company had a Bank overdraft amount of RO 45.180 Trade and other payables consist of the following balances: Trade payables RO 13,517,009, Accrued expenses RO 1,478,658, Advances from customers RO 97,284 The authorized share capital of the company consisted of 50 million ordinary shares of RO 0.300 of which 41,632,660 are issue and paid up There is a balance in the share premium account of RO 13,856,482. Statutory reserve amounted to RO 2,195,875. The retained earnings balance before the adjustment of year end profits amounted to RO 2,815,504 Cash and cash equivalents consisted of cash at bank RO 1.421,773 and cash in hand RO 12.278 Trade and other receivables included Trade receivables RO 14,838,160, Advances to suppliers RO 734,221. Other receivables RO 325,213 and prepaid expenses of RO 70,056 Long term investments amounted to RO 10,000,000 Inventories is comprised of Raw materials RO 10,438,488, Finished goods RO 6,766,200, Stores and spares RO 2,212,578, Goods-in-transit RO 7,009,061, Work-in-process RO 1,378,932. Property plant and equipment includes the following assets as given below with their respective amounts of cost and accumulated depreciation as at the year-end: Cost RO Accumulated Depreciation RO Plant and Machinery 25,515,506 7,049.836 Buildings 8.769.366 2,483,932 Tools and spares 1.951.962 1.203.151 Motor vehicles 146,040 59,318 Furniture and fixtures 245.285 204,718 Computer and other equipment 356,554 232,071 The depreciation was charged for the year as follows: RO Depreciation on Plant and Plant and Machinery 1.281.886 Machinery, Buildings and Buildings 399,393 Tools to be included in cost of Tools and spares 431.760 sales and the remaining Motor vehicles 25.692 depreciation is allocated as Furniture and fixtures 22.466 general and administrative Computer and other equipment 59.589 cost The selling and distribution expenses consist of Packing expenses RO 4,104,323, Commission on sales RO 182,281, Sales promotion expenses RO 17,668, Advertisement and publicity RO 16,648, Other selling and distribution expenses RO 21,355 The employees cost of the year amounted RO 1,055,926 The general and administrative expenses include Provision for doubtful debts RO 505,969. Other expenses RO 217,476, Legal and professional charges RO 62,436, Communication expenses RO 66,153, Travelling and conveyance RO 79,782 and Insurance RO 11,464 The other operating expenses amounted to RO 120,461 The income tax expense for the year is estimated to be RO 89,669 The interest expense for the year amounted to RO 1,258,281 Unrealized gain on Fair value changes on available for sale investments RO 54,334 Basic earnings per share is calculated by dividing the net profit for the year by the number of shares outstanding during the year. Net assets per share is calculated by dividing the net assets or total equity at the end of the reporting period by the number of shares outstanding. You are required to prepare Statement of Comprehensive Income and Statement of Financial position for the year ended 2019 in accordance with IFRS and other governing laws and practices followed in Oman. (15 marks)