Statement of cash flows for the year ended 31 December 2020 Notes Year ended Year ended 31 December 31 December 2020 2019 RO RO Cash flows from operating activities Net profit before tax for the year 5,109,322 2,377,351 Adjustments for: Depreciation 1,760.448 2,008,374 Provision for employees' benefit liabilities 19 125.760 111.698 Amortisation of right-of-use asset 7 71.812 71,812 COVID 19 concession in the form of rent walver 7 23.150) Profit on disposal of property, plant and equipment 22 (21.800) (18,235) Fair value gains on investments at fair value through profit or loss (782.625) Interest income on debt instruments at amortised cost 26 (222.9941 (314,073) Amortisation of premium on debt instruments at amortised cost 26 575 Dividend income 26 1140,1721 124,766) Finance costs 27 32.026 35.192 Cash from operations before working capital changes 5.908.627 4,027,928 Working capital changes Inventories 1,105,004 713,501 Trade and other receivables 297 472 29.186 Trade and other payables 542.694 243.44) Cash generated from operations 7.854.797 5,014,058 Less: employees benefit liabilities paid 19 (24400) (281,635) Less: income tax paid 28 1430.215) (176,036) Net cash generated from operating activities 7.400.152 4,556,387 Cash flows from investing activities Additions to property, plant and equipment 1800,613) 1549,215) Proceeds from disposal of property, plant and equipment 22.300 19,964 Receipts on fair value through profit or loss investments 782,625 Net movement in fair value through other comprehensive income investments 8 16,169 11.941,315) Cost of purchase of fair value through profit or loss investments 9 7,321,004) Proceeds from maturity of debt instruments at amortised cost 10 719.401 Purchase of fair value through other comprehensive income Investments 146,175) (22.505) Net movement in receivables from portfolio managers 19.257 (71,282) Interest income received on debt intruments at amortised cost m2.994 313,498 Dividend income received 140.172 244.766 Net cash used in Investing activities 16,244,874 2,006,089) Cash flows from financing activities Dividends paid 1,777,282) (1,777,282) Interest paid on lease Liabilities 02.026) (35,192) Principal paid on lease Liabilities (37.42) (57.406) Net cash used in financing activities (1.846.730) 11.869,880) Net (decrease) / increase in cash and cash equivalents 1691,452) 680.418 Cash and cash equivalents at the beginning of the year 1.480.732 800,314 Cash and cash equivalents at the end of the year 789,280 1.480732 Disclosure as required by tAs 7 "Statement of Cash Flows has been shown th Note 3e to the financial statements, Statement of profit or loss and other comprehensive income for the year ended 31 December 2020 Notes Year ended 31 December 2020 RO Year ended 31 December 2019 RO 20 21 Income Revenue Cost of revenue Gross profit Other income 23,396,383 (14,914,779) 8,481,604 19,853,148 (13,657,124) 6,196,024 22 31,627 8,513,231 71,296 6,267,320 Expenses Salaries and other employee related costs General and administrative expenses Selling and distribution expenses 23 24 25 (1,644,370) (374,094) 12,499,210) (4,517,674) 3,995,557 (1,621, 163) (434,289) (2,357,589) (4,413,041) 1,854,279 26 27 558,264 (35,192) 782,625 363,166 (32.026) 5,109,322 (766,552) 4,342,770 2,377,351 28 (352,485) 2,024,866 Profit from operations for the year Net gains from investments at fair value through profit or loss Finance income Finance costs Net profit before tax for the year Taxation Net profit after tax for the year Other comprehensive income: Items that will not be reclassified to profit or loss: Changes in fair value through other comprehensive income investments Deferred tax credit / (charge) on fair value through other comprehensive income investments Other comprehensive (loss) / Income for the year Total comprehensive Income for the year Basic earnings per share (RO) (107.793) 449,116 28 16.169 (67,367) (91,624) 381,749 4,251,146 2,406,615 30 0.015 0.007 Statement of financial position as at 31 December 2020 Notes 31 December 31 December 2020 2019 RO RO ASSETS Non-current assets Property, plant and equipment 13,392,335 14,352,670 Right-of-use asset 528,882 600,694 Fair value through other comprehensive income investments 2,167,089 2,228,707 Total non-current assets 16,088,306 17,182,071 Current assets Fair value through profit or loss investments 9 7,321,004 Debt Instruments at amortised cost 10 10,299,989 11,019,390 Inventories 11 3,555,424 4,661,428 Trade and other receivables 12 8,022,770 8,339,499 Cash and cash equivalents 13 789,280 1,480,732 Total current assets 29,988,467 25,501,049 Total assets 46,076,773 42,683, 120 EQUITY AND LIABILITIES Capital and reserves Share capital 14 29,621,368 29,621,368 Legal reserve 15 7,100,236 6,665,959 Retained earnings 4,184,083 2,052,872 Equity investment reserve (714,396) (622,772) Total capital and reserves 40,191,291 37,717,427 Non-current liabilities Non-current portion of tease liabilities 7 461,931 490,476 Employees' benefit liabilities 19 869,818 768,488 Deferred tax liability 28 326,198 399,110 Total non-current liabilities 1,657,947 1,658,074 Current liabilities Current portion of lease liabilities 7 92,597 124,624 Trade and other payables 17 3,310,847 2,768,153 Income tax payable 28 824,091 414,842 Total current liabilities 4,227,535 3,307,619 Total liabilities 5,885,482 4,965,693 Total equity and liabilities 46,076,773 42,683,120 Net assets per share (RO) 29 0.136 0.127 These financial statements, as set out on pages 6 to 36, were approved and authorised for issue by the Board of Directors on 2 February 2021 and signed on their behalf by: Statement of cash flows for the year ended 31 December 2019 Notes Year ended Year ended 31 December 31 December 2019 2018 RO RO Cash flows from operating activities Net profit before tax for the year 2.377,351 879,805 Adjustments for: Depreciation 2,008,374 2,135,649 Amortisation of right-of-use asset 71,812 Profit on disposal of property, plant and equipment (18,235) (12,046) Interest income on debt instruments at amortised cost 23 (314,073) (354,743) Amortisation of premium on debt instruments at amortised cost 23 575 6,705 Dividend income 23 (24,766) (41,555) Finance costs 48.921 12,225 Cash from operations before working capital changes 3.929,959 2,626,035 Working capital changes Inventories 713,501 (207,678) Trade and other receivables 29,186 397,097 Trade and other payables 243,442 (292,517) Net movement in employees' benefits liability (169,937) 73.593 Cash generated from operations 4,746,152 2,596,530 Income tax paid (176,036) (333.431) Net cash generated from operating activities 4.570,116 2.263,099 Cash flows from investing activities Additions to property, plant and equipment (549,215) (246,396) Proceeds from disposal of property, plant and equipment 19,964 14,743 Net movement in fair value through other comprehensive income Investments 8,627 Net movement in debt instruments at amortised cost (1,941,315) (1,683,369) Purchase of fair value through other comprehensive income Investments (22,505) Net movement in receivables from portfolio managers (71,282) 487.219 Interest income on debt intruments at amortised cost 313,498 348,043 Dividend income 244.766 41.555 Net cash used in investing activities (2,006,089) (1.029,578) Cash flows from financing activities Dividends paid (1,777,282) (1,776,873) Finance costs paid (13,729) (12,225) Interest paid on lease liabilities (35,192) Principal paid on lease liabilities (57,406) Net cash used in financing activities (1,883,609) (1,789,098) Net increase / (decrease) in cash and cash equivalents 680,418 (555,577) Cash and cash equivalents at the beginning of the year 800,314 1,355,891 Cash and cash equivalents at the end of the year 1,480,732 800,314 Disclosure as required by IAS 7 "Statement of Cash Flows" has been shown in Note 35 to the financial statements. Statement of profit or loss and other comprehensive income for the year ended 31 December 2019 Year ended 31 December 2019 RO Year ended 31 December 2018 RO Notes 18 Income Revenue from contracts with customers Cost of revenue Gross profit Other income 19,138,619 (13,860,741) 5,277,878 19,853,148 (13,657,124) 6,196,024 71,296 6,267,320 19 99,941 5.377,819 Expenses Salaries and other employee related costs General and administrative expenses Selling and distribution expenses Finance costs 20 21 22 24 (1,621,163) (420,560) (2,357,589) (48,921) (4,448,233) 1,819,087 (2.130,157) (485,347) (2,259,883) (12,225) (4,887,612) 490,207 23 389,598 879,805 558,264 2.377,351 (352,485) 2,024,866 (131,691) 748,114 Profit from operations Finance income Profit before tax for the year Taxation Net profit after tax for the year Other comprehensive Income: Changes in fair value through other comprehensive income investments Deferred tax charge on fair value through other comprehensive income investments Other comprehensive income for the year Total comprehensive income for the year Basic earnings per share (RO) 7 449,116 197,449 25 (67,367) (29,618) 381,749 167,831 2,406,615 915,945 27 0.007 0.003 RO 5 6 Statement of financial position as at 31 December 2019 Notes 31 December 31 December 2019 2018 RO ASSETS Non-current assets Property, plant and equipment 14,352,670 15,813,557 Right-of-use asset 600,694 Fair value through other comprehensive income investments 2,228,707 1,757,086 Total non-current assets 17,182,071 17,570,643 Current assets Debt instruments at amortised cost 8 11,019,390 9,078,075 Inventories 9 4,661,428 5,374,929 Trade and other receivables 10 8,339,499 8,297,403 Cash and cash equivalents 11 1,480,732 800,314 Total current assets 25,501,049 23,550,721 Total assets 42,683,120 41,121,364 EQUITY AND LIABILITIES Capital and reserves Share capital 12 29,621,368 29,621,368 Legal reserve 13 6,665,959 6,463,472 Retained earnings 2,052,872 2,007,775 Equity investment reserve (622,772) (1,004,521) Total capital and reserves 37,717,427 37,088,094 Non-current liabilities Non-current portion of lease liabilities 6 490,476 Employees' benefits liability 17 768,488 938,425 Deferred tax liability 25 399,110 393,303 Total non-current liabilities 1,658,074 1,331,728 Current liabilities Current portion of lease liabilities 6 124,624 Trade and other payables 15 2,768,153 2,524,711 Income tax payable 25 414,842 176,831 Total current liabilities 3,307,619 2,701,542 Total equity and liabilities 42,683,120 41,121,364 Net assets per share (RO) 26 0.127 0.125 These financial statements, as set out on pages 6 to 39, were approved and authorised for issue by the Board of Directors on 12 February 2020 and signed on their behalf by: Statement of cash flows for the year ended 31 December 2018 Notes Year ended Year ended 31 December 31 December 2018 2017 OMR OMR Cash flows from operating activities Profit before tax for the year 879,805 2,217,402 Adjustments for: Depreciation 2,135,649 2,121,836 Profit on disposal of property, plant and equipment (12,046) (5,200) Realised loss on sale of fair value through other comprehensive income investments 17,207 Interest income on debt instruments at amortised cost 22 (354,748) (344,601) Amortisation premium on debt instruments at amortised cost 22 6,705 7,421 Dividend income 22 (41,555) (148,348) Net finance costs 12,225 16,258 Cash from operations before working capital changes 2,626,035 3,881,975 Working capital changes Inventories (207,678) (913,727) Trade receivables and other financial assets at amortised cost 397,097 (1,449,417) Trade and other payables (292,517) (293,307) Net movement in employees' end-of-service benefits liability 73,593 68,108 Cash generated from operations 2,596,530 1,293,632 Income tax paid (333,431) (376,927) Net cash generated from operating activities 2.263,099 916,705 Cash flows from investing activities Additions to property, plant and equipment (246,396) (662,615) Proceeds from disposal of property, plant and equipment 14,743 5,200 Net movement in fair value through other comprehensive income investments 8,627 139,792 Net movement in debt instruments at amortised cost (1.683,369) (1,492,578) Net movement in investments at fair value through profit or loss 770,400 Net movement in receivables from portfolio managers 487,219 (392,200) Interest income on debt intruments at amortised cost 348,043 337,180 Dividend income 41,555 148,348 Net cash used in from investing activities (1,029,578) (1.146,473) Cash flows from financing activities Dividends paid (1,776,873) (2.369,705) Net finance costs paid (12,225) (16,258) Net cash used in financing activities (1,789,098) (2.385,963 Net decrease in cash and cash equivalents during the year (555,577) (2.615.731) Cash and cash equivalents at the beginning of the year 1,355,891 3,971,622 Cash and cash equivalents at the end of the year 10 800,314 1,355,891 Disclosure as required by TAS 7 "Statement of Cash Flows" has been shown in Note 32 to the financial statements. 11 Statement of profit or loss and other comprehensive income for the year ended 31 December 2018 Year ended 31 December 2018 OMR Year ended 31 December 2017 OMR Notes 17 Income Revenue from contract with customers Cost of revenue Gross profit Other income 19,138,619 (13,860,741) 5,277,878 20,819,106 (13,836,239) 6,982,867 18 99,941 32,322 5,377,819 7,015,189 Expenses Salaries and other employee related costs General and administrative expenses Selling and distribution expenses Net finance costs 19 20 21 (2,130,157) (485,347) (2,259,883) (12,225) (4.887,612) (2,277,444) (550.908) (2,421,498) (16,258) (5,266,108) 490,207 1.749,081 22 389,598 468,321 2,217,402 879,805 (131,691) (409,459) 748,114 1,807,943 Profit from operations Other gains Profit before tax for the year Taxation Net profit after tax for the year Other comprehensive income: Fair value changes in fair value through other comprehensive income (available-for-sale 2017) investments Deferred tax charge on fair value through other comprehensive income (available-for-sale 2017) investments Reclassification adjustment: Arising on sale of investments in equity instruments designated at fair value through other comprehensive income Other comprehensive income for the year Total comprehensive income for the year Basic earnings per share (OMR) 197,449 138,000 (29,618) (21,487) 37,831 154,344 167,831 915,945 1,962,287 25 0.003 0.006 OMR 5 6 7 7 8 9 10 Statement of financial position as at 31 December 2018 Notes 31 December 31 December 2018 2017 OMR ASSETS Non-current assets Property, plant and equipment 15,813,557 17,705,507 Fair value through other comprehensive income (available-for-sale 2017) investments 1,757,086 1,594,058 Non-current portion of debt instruments at amortised cost 1,929,389 Total non-current assets 17,570,643 21.228.954 Current assets Current portion of debt instruments at amortised cost 9,078,075 5,465,317 Inventories 5,374,929 5,167,251 Trade receivables and other financial assets at amortised cost 8,297,403 9,210,149 Cash and cash equivalents 800,314 1,355,891 Total current assets 23,550.721 21.198,608 Total assets 41,121,364 42.427.562 EQUITY AND LIABILITIES Capital and reserves Share capital 11 29,621,368 29,621,368 Legal reserve 6,463,472 6,388,661 Retained earnings 2,007,774 1,871,460 Equity investment (available-for-sale 2017) reserve (1,004,521) 121,757 Total capital and reserves 37,088,093 38,003,246 Non-current liabilities Employees' end of service benefits liability 16 938,425 864,832 Deferred tax liability 393,303 408,030 Non-current portion of staff incentive 13,470 Total non-current liabilities 1,331,728 1,286,332 Current liabilities Trade and other payables 2,524,711 2,803,757 Provision for taxation 176,832 334,227 Total current liabilities 2,701,543 3,137,984 Total equity and liabilities 41,121,364 42,427,562 Net assets per share (OMR) 24 0.125 These financial statements, as set out on pages 8 to 47, were approved and authorised for issue by the Board of Directors on 11 February 2019 and signed on their behalf by: 12 23 14 23 0.128 i. Sales How much % sales increased / decreased from the last 3 years 2018 2019 2020 Increase in Increase in 2020 with 2020 with regard of regard of 2019 (in %) 2018 (in %) Student comment on increase/decrease: Sales How much % Net Income is increased / decreased from the last 3 years 2018 2019 2020 Increase in Increase in 2020 with 2020 with regard of regard of 2019 (in %) 2018 (in %) Student comment on increase/decrease: Sales How much % Total Assets are increased / decreased from the last 3 years 2018 2019 2020 Increase in Increase in 2020 with 2020 with regard of regard of 2019 (in %) 2018 (in %) Student comment on increase/decrease: iv. Based on above analysis, what is your comment, whether said company is good for investment or not? Discuss your answer with arguments. Student comment on increase/decrease