Consolidated statement of income For the year ended 31 December 2020 Al amounts ore in Kuwait Diners wiless otherwise stated) Notes 2020 2019 60,560,115 (54,670,547) 5,889,568 59,902.33 (53.8964 6,006,379 22 1,122,300 835,90 urmin 7 24 25 13 26 2,387,732 (1,622,210) (5,046,191) Operating revenue Operating costs Gross profit Governmental subsidy Other perating Income Gain on sale of property, plant dement Marketing expenses General and administrative expenses Reversal of impairment of trade and other recetables Other operating expenses Operating profit Investment income Finance costs Group's share in associate's results Foreign currency exchange gain Profie before subsidiaries' tax and deductions Reversal of income tax on subsidiaries Profetter subsidiaries'tax and before deduction National Labour Support Tax ("NLST") Zakar Profit for the year 11,662.7081 14.777.0851 1327573 1600, 5161 1.130.130 604,017 27 8 203,503 (561,229) 67,780 345,847 659,918 341721 1,001,639 125,371) (10,148 66,120 246.847 (364,103) 81355 71. 720 1,165.949 15,141 1,181,790 15.720) 12.288) 1,173,782 Notes 2020 2019 Consolidated statement of financial position For the year ended 31 December 2020 (All amounts are in Kuwaiti Dinars unless otherwise stated) ASSETS Non-current assets Property, plant and equipment Investments in associate Right-of-use assets Financial assets at fair value through other comprehensive income Financial assets at amortised cost 7 8 37,881,803 501,109 1,679,781 23,732,113 444,539 1,983,312 9 10 11 1,127,905 305,950 41,496,548 1,257,243 2.733, 302 30,150,509 Current assets Financial assets at amortised cost Inventories Trade and other receivables Cash and cash equivalents 11 12 13 14 2,427,352 7,564,452 14,536,582 1.777,062 26,305,448 67,801,996 6,256,519 16.962,171 5,623,287 28.851,977 59,002,486 Total assets 15 16 17 18 19 EQUITY AND LIABILITIES EQUITY Share capital Share premium Treasury shares Statutory reserve Voluntary reserve Other reserves Accumulated losses Total equity LIABILITIES Non-current liabilities Employees' end of service benefits Bank borrowing Lease liabilities -non current 21,659,057 4,967,805 (1,647,126) 11,825,560 4,489, 130 132,591 (135,038) 41,291,979 21,659,057 4,967,805 (1,647,126) 11,825,560 4,489,130 (42,427) 11,101,158) 40,150,841 20 9 1,396,624 4,871,951 1,312,937 7,581,512 1,416,252 6,771.951 1.553.599 9.741.802 Current liabilities Bank borrowing Bank overdraft Trade and other payables Lease liabilities - current Total liabilities Total equity and liabilities 20 14 21 9 1,900,000 9,847,179 6,787,221 394,105 18,928,505 26,510,017 67,801,996 1.900.000 115,045 6,701,628 393170 9,109.843 18.851,645 59.002.486 QUESTION 2) (30 pts) Answer the following questions using LIVESTOCK's financial reports. a) Although company combined trade receivables and other receivables in one line item in the balance sheet (see Current Assets), what should be the main difference between trade receivables and other receivables? (10 pts, min. 30 words) b) Calculate the year-to-year change (in KWD and %) in "Operating Revenue" and "Trade and other receivables" from 2019 to 2020 separately. (Show the calculation otherwise you will not gain any point) (10 pts) c) Considering your findings for (b) indicate whether the change in trade and other receivables relative to change in operating revenue is favorable or not, and comment on the trend by providing at least one possible reason. (10 pts, min. 30 words) QUESTION 3) (20 pts) Answer the following questions using LIVESTOCK's financial reports. a) Calculate the percentage of assets devoted to cash and cash equivalents in 2019 and 2020 (Show the calculations otherwise you will not gain any points) (20 pts). b) What would be the reason that company is holding less cash relative to assets in 2020? (10 pts, min. 30 words) QUESTION 4) (30 pts) Answer the following questions using LIVESTOCK's financial reports. a) Calculate Total Liabilities to Equity ratio and Debt-to-Equity ratio for 2019 and 2020 separately. (Be careful while calculating Debt-to-Equity ratio. You need to use only financial liabilities in the calculation. Show the calculations otherwise you will not gain any points) (20 pts). b) Comment of the riskiness of the company from 2019 to 2020. Riskiness Increased or Decreased? Provide at least one possible reason for the change in the riskiness. (10 pts, min. 30 words)