Compute the following two ratios for the year 2017 then analyze and interpret the companys performance(long term ratios):

- Times Interest Earned Ratio

- Fixed charge coverage ratio

AED 1000 AED '000 5 6 7 8 9 224,486 2.924 1.234,498 256,790 260.898 1,979,596 189,568 2,924 1.213.134 74,339 260,898 1,740,863 7 9 10 11 12 13 NON CURRENT ASSETS Property, plant and equipment Investment properties Available for sale investments Investment in an associate Loan receivable from associate TOTAL NON CURRENT ASSETS CURRENT ASSETS Available for sale investments Loan receivable from associate Inventories Trade and other receivables Due from related parties Bank balances and cash TOTAL CURRENT ASSETS CURRENT LIABILITIES Due to related parties Bank loan/Overdraft Trade and other payables TOTAL CURRENT LIABILITIES NET CURRENT ASSETS NON CURRENT LIABILITIES Provision for employees' end of service gratuities Bank loan Total Non Current Liabilities NET ASSETS 701 55.102 59,6%6 87,997 97,940 18,895 320,331 638 55,102 56,266 124,405 100,911 22,701 360,023 12 14 15 30.237 105,806 40.404 176,447 34,202 68,137 54.216 156,555 143,884 203,468 16 14 23,418 261.497 284,915 1.838,565 23,396 273,219 296,615 1,647,716 17 EQUITY Share capital Share application money Fair value reserve General reserve Statutory reserve Foreign exchange reserve Special reserve Retained eamings TOTAL EQUITY 18 19 20 8 21 358,800 26 550.573 316,517 179,402 304,138 358,800 26 504.299 316,517 179.402 (56.927) 38,129 307.470 1.647.716 129,109 1,838,565 Note 2017 AED '000 2016 AED '000 Revenue Cost of sales 204,838 (191.471) 253,484 (212.958) 23 Gross profit 13.367 40.526 Other income 24 34,598 33,332 47,965 73.858 Administration, selling and general expenses 25 (30,848) (30,368) Profit before finance income and expense and before share of associate 17,117 43,490 Finance cost Income from Investments (net) 26 27 (16,854) 53,311 (15,378) 60.360 53.574 88.472 Profit after finance income and expense and before share of associate Share of net profit/(loss) in associate Net profit/(loss) for the year & (178,613) 552 (125,039) 89,024 Other comprehensive income Items that will or may be reclassified to profit or loss: Net movement in fair value of available for sale investments Change in foreign exchange reserve Loss on derecognition of available for sale investments 7 8 7 (1.608) 361.064 47.882 (2,023) (3,741) (30.417) Other comprehensive income for the year 407,338 (36,181) 282,299 Total comprehensive income for the year 52,843 Basic and diluted earnings per share (AED) 28 (0.35) 0.25