Question 2a) Calculate the following ratios based on the details given in the three financial statements. Also, interpret your outcome. [Total points 10/20 Liquidity Profitability 1) Current ratio 1) Operating profit margin 2) Account receivable turnover and 2) Assets turnover 3) Return on assets. Solvency Shareholder's Ratio 1) Ratio of liabilities to stockholder's equity. 1) Return on total stockholder's equity 2) Interest coverage ratio. 3) Total debt ratio Question 2b) By sing the information in the statements, also calculate and interpret the followings: (Total points 02/201 1) Price earnings ratio 2) Dividends per share 2017 2016 EPS (fils) 39 Market Price (fils) 434 410 No of Shares (millions) 4,327,060,000 4,327,060,000 40 CONSOLIDATED STATEMENT OF PROFIT OR LOSS - YEAR ENDED 31 DECEMBER 2017 2017 2016 NOTE KD 000 20 Revenue Cost of sales 21 13,14 5 1,029,547 (290,891) 738.656 (313,964) (185,050) (10.256) 229,386 27,850 781 127 (12,207) (40.100) (37,826 32.120) 45,789 1,087,774 266,764) 821,010 308,174) 222,307) (1.296) 289,233 5,992 3.925 (30,781 (22,793 (32,598 Gross profit Operating and administrative expenses Depreciation and amortization Provision for impairment - trade and other receivables Operating profit Interest income Investment income Share of results of associates and joint ventures Other (expenses/income Finance costs Provision for impairment loss on property and equipment Loss from currency revaluation Net monetary gain Profit before, contribution to KFAS, NLST, Zakat, income taxes and Board of Directors' remuneration Contribution to Kuwait Foundation for Advancement of Sciences National Labour Support Tax and Zakat Income tax expenses Board of Directors' remuneration Profit for the year 9,10 = 13 (42,044) 30,781 34 181,680 193,865 23 24 (1.100) 15,7531 10,400 (275 164,152 1666) 16,138 (28,051) (275) 158,735 Attributable to: Shareholders of the Company Non-controlling interests 159.817 4335 164,152 156,702 2,033 158,735 25 Earnings per share (EPS) Basic - Fils Diluted - Fils 39 39 40 40 CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2017 2017 2016 NOTE KD000 ASSETS Current assets Cash and bank balances Trade and other receivables Inventories Investment securities at fair value through profit or loss Non-current assets held for sale 4 5 6 7 244398 455,801 34 402 778 7656 73,035 208,752 450,386 16,418 964 676.520 Non-current assets Investment securities available for sale Investments in associates and joint ventures Dues from associates Others Property and equipment Intangible assets and goodwill 7 9,10 11 12 13 14 16,118 188.412 415.759 15.131 743.586 911,630 2290636 3,033,671 22,134 190.396 381.661 15,598 798.156 1,007 237 2415,182 3,091,702 Total Assets LIABILITIES AND EQUITY Current liabilities Trade and other payables Due to banks 15 16 515384 199 564 714.968 570.920 219,154 790,074 Non-current liabilities Due to banks Other non-current liabilities 16 17 670.637 38482 709,119 830,193 48.953 879,146 18 Equity Attributable to company's shareholders Share Capital Share premium Legal reserve Foreign currency translation reserve Treasury shares Treasury shares reserve Investment fair valuation reserve Share of reserves of associates Retained earnings 132.708 1.707,164 216 353 11.189 469 18 18 19 3.251 132,706 1,707,164 216.353 11.100.000 567834 1.967 3.484 1120 571.503 1.265.129 157353 1.422,482 3,091,702 Non-controlling interests Total equity Total Liabilities and Equity 281,919 1.45159 158,006 1.609.604 3.033.671 = 2017 2016 4 CASH FLOW STATEMENT Cash flows from investing activities Deposits maturing after three months and cash at bank under lien Proceeds from sale of investment securities Investments in securities Increase in dues from associates Acquisition of property and equipment (net) Acquisition of intangible assets Investments in subsidiaries Interest received Dividends received Net cash used in investing activities (6,364 9,829 (4,184) (11,750) (133,657) (11,863) (516) 28,089 249 (130,167) 99,931 5,995 (1,350) (28,164) (167,372) (41,160) (53) 5,239 703 (126,231) 247,911 (169,544) Cash flows from financing activities Proceeds from bank borrowings Repayment of bank borrowings Proceeds from sale of treasury shares Dividends paid Dividends paid to non-controlling interests Finance costs paid Net cash used in financing activities 323,387 (491,111) 255,172 (136,834) (1,741) (35,340) (86,467) (117,840) (15,059) (24,619) (79,151) Net (decrease]/increase in cash and cash equivalents Effects of exchange rate changes on cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 34,833 (5,551) 177,150 206,432 (5,628) (45,488) 228.266 177,150 4 =