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Posted on Sep 18, 2024

Question 4 You are required to analyze the Parent company of National Gas Company (S.A.O.G) financial statements (Statement of Financial Position and Statement of Revenue)

Question 4 You are required to analyze the Parent company of National Gas Company (S.A.O.G) financial statements (Statement of Financial Position and Statement of Revenue) for a period of 2018-2019 years, using the tools and techniques such as; Horizontal Analysis (10 Marks) NATIONAL GAS COMPANY (S.AO.G.) AND ITS SUBSIDIARIES Separate and consolidated statement of financial position as at 31 December 2019 Parent Group 2019 2018 2019 2018 Notes RO RO RO RO ASSETS Non-current assets Property, plant and equipment 6 5.753,428 5,067,091 24.708.906 23,675,713 Right-of-use assets 7 324,644 4.682.920 Financial assets at fair value through OCI 875,777 1,096,075 875.777 1,096 075 Investment in subsidiaries 11.458.975 11 037 388 Goodwill 9 7.929,183 7,840 565 Trading license 9 30,316 40.421 Other investments 10 75,000 75,000 659.454 662 332 Due from related party 744,473 Total non-current assets 19.232.297 38.886,556 33315 103 Current assets Inventories 11 527,131 527,745 1,085,529 1.224,792 Trade and other receivables 12 5.780.240 5 310.011 11.717.718 18.147830 Cash and bank balances 207,471 119,417 7,689,976 1,784,128 Current assets 6.514.042 5,967,173 20.493.223 21,156,750 Non-current assets classified as held for sale 90.265 90.265 Total current assets 6.514,842 6,047,438 20.493.223 21247,015 Total assets 25.747,139 233322.98259.379.77954582.121 EQUITY AND LIABILITIES Capital and reserves Share capital 8.000.000 7,000,000 8.000.000 7,000,000 Share premium 15 1.787.632 2,787,632 1.787.632 2,787,632 Legal reserve 16 1,937 462 1.778.254 1.937.462 1,778.254 Other reserves 17 300,000 300,000 538.909 530,888 Fair value reserve 281.235 374 441 281.236 374 441 Revaluation reserve 18 3.212.849 2,575,349 3.569.108 2,575, 349 Foreign currency translation reserve 12.069,685) 2,203,500) Retained earnings 1.959.033 850 578 7.751,584 6.920,786 Equity attributable to equity holders of Parent 17.478. 211 15,686 254 21.796 246 19,763,850 Non-controlling interest 9.444.730 8,152,311 Total equity 17,478,211 15 686 254 31.240.976 27916 161 LIABILITIES Non-current liabilities Non-current portion of term loans 20 1,617.595 1,350,000 1,617,595 1,350,000 Lease Liabilities 21 280 279 3.149.685 Accrual for staff terminal benefits 22 326.295 275,399 402.733 334,639 Deferred tax liability.net 33 621 877 442 688 3.082.213 2.905 777 Total non-current liabilities 2.846.046 2088087 8.252 226 4590416 Current liabilities Accounts payable and accruals 23 1.742.556 1.646.628 7.504.271 5,638,783 Current portion of lease liabilities 21 27,565 275,934 Bank overdrafts 13 215 441 1,777,210 215.441 1,777.210 Short term loans 24 3,070,745 1,767,639 11,527.491 11,988,146 Current portion of term loans 20 331,955 2,349,922 Provision for taxation 33 366.575 65219 363.440 301 483 Total current liabilities 5.422.882 5588.651 19.886.577_22,055,544 Total liabilities 8.268.928 7656.738 28.138.803 26645980 Total equity and liabilities 25,747,139 23 322 892 59,379,779 54,562 121 NATIONAL GAS COMPANY (S.A.O.G.) AND ITS SUBSIDIARIES Separate and consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2019 Parent Group 2019 2018 2019 2018 Notes RO RO RO RO Revenue 27 11,677,680 13,381,973 76,293,959 85,414,529 Cost of sales 28 (10,540,364) (12,039,007) (67,343,062)(75,341 667) Gross profit 1,137,316 1,342,966 8,950,897 10,072,862 Administrative expenses 29 (1,031,436) (1,058,598) (5,735,396) (5,787 550) Operating profit 105,880 284,368 3,215,501 4,285,312 Other income-net 31 264.753 319,561 291,454 426,776 Finance cost (320,944) (227,011) (1,204,600) (951,934) Loss on disposal of an associate (1,947) Dividend income 894,336 Participation Fees 32 1,162,000 1,162,000 Share of (loss)/profits from joint ventures 10 (2,878) 38,302 Impairment (loss) / reversal on trade 12 receivables (82,449) 5,675 (456,221) (10,333) Profit before taxation 2,021,629 382,593 3,005,256 3,788,123 Taxation 33 (429,552) (51,984) (1,047,127) (888 205) Profit for the year 1,592,077 330,609 1,958,129 2,899,918 Other comprehensive loss Items that will not be reclassified subsequently to profit or loss Changes in fair value investments carried at fair value through other comprehensive income (67,619) (267 585) (67.619) (267585) (67,619) (267,585) (67,619) (267 585) Iterns that may be reclassified subsequently to profit or loss Surplus on revaluation of fixed asset-net of tax 637,500 1,231,265 Exchange difference on translation of foreign operations 547,539 (443,269) 637,500 1.778,805 (443 269) Other comprehensive income / (loss) for the year 569,881 (267 585) 1,711,186 710 854) Total comprehensive income for the year 2,161,958 63,024 3,669,315 2,1897084 Profit attributable to: Equity holders of the Parent 1,592,077 330,609 1,314,420 1,759,174 Non-controlling interest 643,709 1.140.744 Total profit for the year 1.592.077 330.609 1.958 129 2.899.918 Total comprehensive income attributable to: Equity holders of the Parent 2,161,958 63,024 2,376,896 1,220,380 Non-controlling interest 1,292,419 968,684 Total comprehensive income for the year 2.161.958 63,024 3.669,315 2 189 064 Basic and diluted earnings per share attributable to ordinary equity holders of the Parent (2018 . restated) 34 0.020 0.004 0.016 0.022 armattinguidoline. Question 4 You are required to analyze the Parent company of National Gas Company (S.A.O.G) financial statements (Statement of Financial Position and Statement of Revenue) for a period of 2018-2019 years, using the tools and techniques such as; Horizontal Analysis (10 Marks) NATIONAL GAS COMPANY (S.AO.G.) AND ITS SUBSIDIARIES Separate and consolidated statement of financial position as at 31 December 2019 Parent Group 2019 2018 2019 2018 Notes RO RO RO RO ASSETS Non-current assets Property, plant and equipment 6 5.753,428 5,067,091 24.708.906 23,675,713 Right-of-use assets 7 324,644 4.682.920 Financial assets at fair value through OCI 875,777 1,096,075 875.777 1,096 075 Investment in subsidiaries 11.458.975 11 037 388 Goodwill 9 7.929,183 7,840 565 Trading license 9 30,316 40.421 Other investments 10 75,000 75,000 659.454 662 332 Due from related party 744,473 Total non-current assets 19.232.297 38.886,556 33315 103 Current assets Inventories 11 527,131 527,745 1,085,529 1.224,792 Trade and other receivables 12 5.780.240 5 310.011 11.717.718 18.147830 Cash and bank balances 207,471 119,417 7,689,976 1,784,128 Current assets 6.514.042 5,967,173 20.493.223 21,156,750 Non-current assets classified as held for sale 90.265 90.265 Total current assets 6.514,842 6,047,438 20.493.223 21247,015 Total assets 25.747,139 233322.98259.379.77954582.121 EQUITY AND LIABILITIES Capital and reserves Share capital 8.000.000 7,000,000 8.000.000 7,000,000 Share premium 15 1.787.632 2,787,632 1.787.632 2,787,632 Legal reserve 16 1,937 462 1.778.254 1.937.462 1,778.254 Other reserves 17 300,000 300,000 538.909 530,888 Fair value reserve 281.235 374 441 281.236 374 441 Revaluation reserve 18 3.212.849 2,575,349 3.569.108 2,575, 349 Foreign currency translation reserve 12.069,685) 2,203,500) Retained earnings 1.959.033 850 578 7.751,584 6.920,786 Equity attributable to equity holders of Parent 17.478. 211 15,686 254 21.796 246 19,763,850 Non-controlling interest 9.444.730 8,152,311 Total equity 17,478,211 15 686 254 31.240.976 27916 161 LIABILITIES Non-current liabilities Non-current portion of term loans 20 1,617.595 1,350,000 1,617,595 1,350,000 Lease Liabilities 21 280 279 3.149.685 Accrual for staff terminal benefits 22 326.295 275,399 402.733 334,639 Deferred tax liability.net 33 621 877 442 688 3.082.213 2.905 777 Total non-current liabilities 2.846.046 2088087 8.252 226 4590416 Current liabilities Accounts payable and accruals 23 1.742.556 1.646.628 7.504.271 5,638,783 Current portion of lease liabilities 21 27,565 275,934 Bank overdrafts 13 215 441 1,777,210 215.441 1,777.210 Short term loans 24 3,070,745 1,767,639 11,527.491 11,988,146 Current portion of term loans 20 331,955 2,349,922 Provision for taxation 33 366.575 65219 363.440 301 483 Total current liabilities 5.422.882 5588.651 19.886.577_22,055,544 Total liabilities 8.268.928 7656.738 28.138.803 26645980 Total equity and liabilities 25,747,139 23 322 892 59,379,779 54,562 121 NATIONAL GAS COMPANY (S.A.O.G.) AND ITS SUBSIDIARIES Separate and consolidated statement of profit or loss and other comprehensive income for the year ended 31 December 2019 Parent Group 2019 2018 2019 2018 Notes RO RO RO RO Revenue 27 11,677,680 13,381,973 76,293,959 85,414,529 Cost of sales 28 (10,540,364) (12,039,007) (67,343,062)(75,341 667) Gross profit 1,137,316 1,342,966 8,950,897 10,072,862 Administrative expenses 29 (1,031,436) (1,058,598) (5,735,396) (5,787 550) Operating profit 105,880 284,368 3,215,501 4,285,312 Other income-net 31 264.753 319,561 291,454 426,776 Finance cost (320,944) (227,011) (1,204,600) (951,934) Loss on disposal of an associate (1,947) Dividend income 894,336 Participation Fees 32 1,162,000 1,162,000 Share of (loss)/profits from joint ventures 10 (2,878) 38,302 Impairment (loss) / reversal on trade 12 receivables (82,449) 5,675 (456,221) (10,333) Profit before taxation 2,021,629 382,593 3,005,256 3,788,123 Taxation 33 (429,552) (51,984) (1,047,127) (888 205) Profit for the year 1,592,077 330,609 1,958,129 2,899,918 Other comprehensive loss Items that will not be reclassified subsequently to profit or loss Changes in fair value investments carried at fair value through other comprehensive income (67,619) (267 585) (67.619) (267585) (67,619) (267,585) (67,619) (267 585) Iterns that may be reclassified subsequently to profit or loss Surplus on revaluation of fixed asset-net of tax 637,500 1,231,265 Exchange difference on translation of foreign operations 547,539 (443,269) 637,500 1.778,805 (443 269) Other comprehensive income / (loss) for the year 569,881 (267 585) 1,711,186 710 854) Total comprehensive income for the year 2,161,958 63,024 3,669,315 2,1897084 Profit attributable to: Equity holders of the Parent 1,592,077 330,609 1,314,420 1,759,174 Non-controlling interest 643,709 1.140.744 Total profit for the year 1.592.077 330.609 1.958 129 2.899.918 Total comprehensive income attributable to: Equity holders of the Parent 2,161,958 63,024 2,376,896 1,220,380 Non-controlling interest 1,292,419 968,684 Total comprehensive income for the year 2.161.958 63,024 3.669,315 2 189 064 Basic and diluted earnings per share attributable to ordinary equity holders of the Parent (2018 . restated) 34 0.020 0.004 0.016 0.022 armattinguidoline