Esterad Investment BSC : Q3 2022 - English

Esterad Investment Company BSC

P.O. Box 1080, Manama, Kingdom of Bahrain, Tel [phone] Fax [phone]

CONDENSED CONSOLIDATED INTERIM FINANCIAL INFORMATION - For the nine months ended 30 September 2022	www.esterad.net

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 September 2022

		Bahraini Dinars
	30 September	31 December
	2022	2021
	(reviewed)	(audited)
Assets
Cash and bank balances	2,259,491	4,514,212
Investment securities	23,863,355	26,756,174
Development properties	14,014,954	13,276,863
Investment properties	6,527,486	3,435,280
Other assets	3,736,480	2,317,590
Total assets	50,401,766	50,300,119
Liabilities
Bank borrowings	9,709,817	8,607,219
Other liabilities	6,828,979	6,989,738
Total liabilities	16,538,796	15,596,957
Total net assets	33,862,970	34,703,162
Equity
Share capital	14,000,000	14,000,000

CONDENSED CONSOLIDATED STATEMENT

OF PROFIT OR LOSS

For the nine months ended 30 September 2022

					Bahraini Dinars
	Nine months ended		Three months ended
	30 September	30 September	30 September	30 September
	2022	2021	2022	2021
	(reviewed)	(reviewed)	(reviewed)	(reviewed)
Investment income	1,763,580	1,598,143	648,397	230,609
Income on development
properties	214,696	162,523	28,348	-
Income on investment properties	557,454	503,000	80,875	503,000
Other income	-	7,110	-	-
Total income	2,535,730	2,270,776	757,620	733,609
General and administrative
expenses	834,698	804,242	346,098	243,897
Interest expense	153,871	310,256	46,072	99,097
Total expenses	988,569	1,114,498	392,170	342,994
Profit for the period before
fair value changes on FVTPL
securities	1,547,161	1,156,278	365,450	390,615

CONDENSED CONSOLIDATED STATEMENT

OF COMPREHENSIVE INCOME

For the nine months ended 30 September 2022

					Bahraini Dinars
	Nine months ended		Three months ended
	30 September	30 September	30 September	30 September
	2022	2021	2022	2021
	(reviewed)	(reviewed)	(reviewed)	(reviewed)
Profit for the period	928,127	1,035,653	363,856	302,798
Other comprehensive income:
Items that will not be reclassified to
profit or loss
Net changes in fair value of equity
investments classified as fair value through
other comprehensive income (FVTOCI)	585,508	(99,502)	174,491	(132,213)
Items that are may be reclassified
subsequently to profit or loss
Net change in fair value of debt securities
at FVTOCI	(1,328,970)	286,784	(324,012)	(103,396)
Fair value gain on debt securities at FVTOCI
reclassified to profit or loss on sale	(87,416)	(470,605)	(24,096)	(4,397)
Transfer to profit or loss on impairment of
debt securities	(70,177)	31,766	-	19,293
Cash flow hedges - effective portion of
change in fair value	425,856	150,038	139,806	25,600

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the nine months ended 30 September 2022

		Bahraini Dinars
	Nine months ended	Nine months ended
	30 September 2022	30 September 2021
	(reviewed)	(reviewed)
Operating activities
Dividends received	537,321	356,867
Interest received	550,239	524,617
Proceeds from sale of equity securities	4,586,703	5,817,890
Purchase of equity securities	(4,628,596)	(7,088,413)
Purchase of debt securities	(618,565)	(7,610,820)
Proceed from debt securities	2,371,047	6,560,200
Purchase of development properties	(1,266,500)	(1,685,113)
Proceed on sale of development properties	242,238	942,500
Payment for additions to development properties	(2,589,478)	(454,281)
Pledged deposit	(2,625)	31,248
Custody fees and investment related expenses paid	(4,378)	(3,481)
Salaries and benefits paid	(538,849)	(686,558)
Payments for general and administrative expenses	(862,759)	(199,833)
Charitable donation	(20,939)	(28,632)
Advance to minority shareholder	-	(245,822)
Net cash used in operating activities	(2,245,141)	(3,769,631)
Investing activities
Proceed from sale of equipment	-	2,100
Acquisition of equipment	(47,148)	(38,468)
Net cash used in investing activities	(47,148)	(36,368)
Financing activities

Share premium	7,966,301	7,966,301
Treasury shares	(98,601)	(93,961)
Statutory reserve	7,430,185	7,453,885
General reserve	460,241	460,241
Hedging reserve	376,417	(49,439)
Retained earnings	3,728,427	4,503,919
Total equity attributable to
shareholders of the Company	33,862,970	34,240,946
Non-controlling interest	-	462,216
Total equity	33,862,970	34,703,162

Fair value losses on FVTPL
securities, net	(619,034)	(120,625)	(1,594)	(87,817)
Profit for the period	928,127	1,035,653	363,856	302,798
Profit/ (loss) for the period
attributable to:
Shareholders of the Company	928,175	1,038,744	363,856	305,081
Non-controlling interest	(48)	(3,091)	-	(2,283)
	928,127	1,035,653	363,856	302,798
Basic earnings per 100 fils share	6.7	7.4	2.6	2.2

Cash flow hedges - reclassified to profit						Funds borrowed, net	1,102,598	951,893
or loss	-	11,752	-	-	Interest paid	(230,714)	(132,326)
Total other comprehensive income for						Dividends paid	(836,941)	(701,278)
the period	(475,199)	(89,767)	(33,811)	(195,113)	Net cash generated from financing activities	34,943	118,289
Total comprehensive income for						Net decrease in cash and cash equivalents during
the period	452,928	945,886	330,045	107,685	the period	(2,257,346)	(3,687,710)
						Cash and cash equivalents as at 1 January	4,222,139	8,401,903
Total comprehensive income for the						Cash and cash equivalents at 30 September	1,964,793	4,714,193
					Cash and bank balances in the condensed
period attributable to:						consolidated statement of financial position	2,259,491	4,708,891
Shareholders of the Company	452,976	948,977	330,045	109,968	Less: Pledged deposit	(300,000)	-
Non-controlling interest	(48)	(3,091)	-	(2,283)	Add: Expected credit loss	5,302	5,302
Cash and cash equivalents in the condensed
	452,928	945,886	330,045	107,685
	consolidated statement of cash flows	1,964,793	4,714,193

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - For the nine months ended 30 September 2022

Bahraini Dinars

			Attributable to the shareholders of the Company
										Non-
	Share	Share	Treasury	Statutory	General	Hedging	Retained			controlling	Total
2022 (reviewed)	Capital	premium	Shares	reserve	reserve	reserve	earnings	Total	interest	equity
At 1 January 2022	14,000,000	7,966,301	(93,961)	7,453,885	460,241	(49,439)	4,503,919	34,240,946	462,216	34,703,162
Comprehensive income for the period:
Profit/ (loss) for the period	-	-	-	-	-	-	928,175	928,175	(48)	928,127
Total other comprehensive income	-	-	-	-	-	425,856	(901,055)	(475,199)	-	(475,199)
Total comprehensive income for the period	-	-	-	-	-	425,856	27,120	452,976	(48)	452,928
Dividends declared for 2021	-	-	-	-	-	-	(836,941)	(836,941)	-	(836,941)
Treasury shares acquired	-	-	(4,640)	-	-	-	-	(4,640)	-	(4,640)
Acquisition of subsidiary	-	-	-	-	-	-	-	-	134,735	134,735
Loss of control of subsidiary	-	-	-	(23,700)	-	-	34,329	10,629	(596,903)	(586,274)
At 30 September 2022	14,000,000	7,966,301	(98,601)	7,430,185	460,241	376,417	3,728,427	33,862,970	-	33,862,970

Bahraini Dinars

			Attributable to the shareholders of the Company
										Non-
	Share	Share	Treasury	Statutory	General	Hedging	Retained			controlling	Total
2021 (reviewed)	Capital	premium	Shares	reserve	reserve	reserve	earnings	Total	interest	equity
At 1 January 2021	14,000,000	7,966,301	(93,961)	7,556,291	460,241	(246,619)	4,220,791	33,863,044	486,714	34,349,758
Comprehensive income for the period:
Profit/ (loss) for the period	-	-	-	-	-	-	1,038,744	1,038,744	(3,091)	1,035,653
Total other comprehensive income	-	-	-	-	-	161,790	(251,557)	(89,767)	-	(89,767)
Total comprehensive income for the period	-	-	-	-	-	161,790	787,187	948,977	(3,091)	945,886
Dividends declared for 2020	-	-	-	-	-	-	(697,521)	(697,521)	-	(697,521)
At 30 September 2021	14,000,000	7,966,301	(93,961)	7,556,291	460,241	(84,829)	4,310,457	34,114,500	483,623	34,598,123

Hesham Al Rayes - Chairman	Abdulrahman Jamsheer - Deputy Chairman	Ahmad Abdulrahman - Chief Executive Officer	Reviewed by KPMG - Approved by the Board of Directors on 12th November 2022