Description
I need help analyzing the financial statements for this company. I’ve attached all the statements in an Excel file. Could you please analyze the financials and provide your insights on its financial health, profitability, and potential for future growth? Specifically, I’d appreciate your assessment of these key areas: liquidity, solvency, profitability, efficiency, and growth potential.
Unformatted Attachment Preview
Statement of financial position
Currency – SAR
as at 31 Dec 2022
31 Dec 2022
SAR
2.688.818
737.089
201.790.872
12.997.340
67.330.308
13.149.981
298.694.407
31 Dec 2021
SAR
2.786.227
1.072.171
226.290.105
25.394.827
50.850.425
12.349.528
318.743.281
TOTAL ASSETS
1.313.660
27.665.540
23.907.024
34.732.925
87.619.148
386.313.555
54.815.120
27.302.047
21.860.066
5.904.096
109.881.328
428.624.609
EQUITY
Share Capital
Statutory reserve
Retained Earning
TOTAL EQUITY
47.500.000
12.500.000
94.253.369
154.253.369
47.500.000
12.500.000
106.146.081
166.146.081
5.668.576
152.206.856
765.148
82.265
158.722.845
1.406.355
153.054.866
781.248
10.514.848
165.757.316
21.959.529
236.895
26.299.753
24.841.164
73.337.341
232.060.186
33.229.169
1.477.000
37.173.880
24.841.164
96.721.212
262.478.528
ASSETS
NON-CURRENT ASSETS
Property and Equipment
Intagible Assets
Investment properties
Due from related parties
Investment in subsidiaries
Investment in joint venture
CURRENT ASSETS
Due from related parties
Prepayments and other current assets
Accounts Receivable
Cash and cash equivalents
NON-CURRENT LIABILITIES
Derivative financial liabilities
Long term borrowings
Defined benefits obligation
Due to related parties
CURRENT LIABILITIES
Accounts payable, accruals and other payables
Zakat payable
Amount due to related parties
Deferred rental income
TOTAL LIABILITIES
TOTAL EQUITY AND LIABILITIES
386.313.555
–
428.624.609
–
Varaince
% of Varaince Reason of variance
(97.409)
(335.082)
(24.499.233)
(12.397.487)
16.479.884
800.454
(20.048.874)
-3,5% There is a decrease in the Property and Equipment
-31,3% There is a decrease in theIntagible Assets
-10,8% There is a decrease in the investment properties
-48,8% There is a decrease in Due from related parties
32,4% There is a slight increase due to operation
6,5% There is a slight increase due to inter new JV
-6,3%
(53.501.460)
363.493
2.046.958
28.828.829
(22.262.180)
(42.311.054)
-97,6% There is a decrease in Due from related parties
1,3% There is a slight increase due to the operation
9,4%
488,3% There is an increase due to the operation management
-20,3%
-9,9%
(11.892.712)
(11.892.712)
0,0%
0,0%
-11,2%
-7,2%
4.262.221
(848.010)
(16.100)
(10.432.583)
(7.034.472)
303,1% There is a material increase due to
-0,6% slight decrease due to there is no additional loans
-2,1% No major variance noted
-99,2%
-4,2%
(11.269.640)
(1.240.105)
(10.874.127)
(23.383.871)
(30.418.343)
-33,9% There is a material decrease due to
-84,0%
-29,3%
0,0% No major variance noted
-24,2%
-11,6%
(42.311.054)
-9,9%
Movment of account
due to depreciation
due to amortisation
due to depreciation
due increase in collection
due to acquisition of companies
due to improved valuations
due increase in collection
due to increase in advances to sppliers and VAT receivable
slower collection
The large increase due improved cash management and financing activities
changes in market value
A slight decrease may reflect regular loan repayments.
the sharp drop due to payments to related parties.
Decrease in trade payble
the sharp drop due to payments to related parties.
statement of income
Currency – SAR
for the period of 2022
Profit and loss
Revenue
Direct Cost
Gross profit
2022
SAR
90.823.276
(60.582.411)
30.240.865
General and administrative expenses
Gain from reevaluate Gain on sale of investment properties
Operation profit
(5.312.995)
18.150.150
43.078.021
(Reversal) provision for doubtful debts
Finance Cost
Other income/(loss)
Share of profit from an subsidiaries
Share of profit/(loss) from equity accounted investee
Profit before Zakat
1.007.263
(9.401.768)
1.031.207
2.572.477
2.733.833
41.021.032
Provision for zakat
(271.500)
Profit for the year
40.749.532
OCI Impact of Defined Benefit Obligation
Share of other comprehensive income (loss) from subsidiaries
5.149
62.349
Other comprehensive income for the year
40.817.029
Net Income
40.817.029
Gross Profit Margin
Net profit margin
EBIT
47,4%
44,9%
50.490.296
Horizontal Analysis
Vertical Analysis
2021
Variance
% of Varaince Reason for variance
% of Varaince 2022
SAR
(2022 Vs 2021)
98.803.668
(7.980.392)
-8,08% Due Variation and change in market supply and demand and changing the
(65.758.728)
5.176.317
-7,87% the same ratio of revenue decrease
-67%
33.044.940
(2.804.075)
Decrease in line with gross profit and administrative expense variances.
(6.667.025)
17.687.810
44.065.725
1.354.031
462.341
(987.704)
-20,31% due to decrease in revenue
-6%
2,61% No major variance noted
20%
Decrease in line with gross profit and administrative expense variances.
(159.885)
(3.424.823)
(17.059)
2.915.050
2.875.516
46.254.524
1.167.148
(5.976.945)
1.048.265
(342.573)
(141.684)
(5.233.492)
(1.523.833)
1.252.333
-82,18%
0%
44.730.691
(3.981.159)
-8,90%
45%
93.182
11.358
(88.034)
50.991
-94,47%
448,96%
0%
0%
44.835.231
(4.018.202)
-8,96%
44.835.231
(4.018.202)
-8,96%
44,6%
45,4%
49.783.886
706.410
-729,99% Due to recovery of previously written-off receivables.
1%
174,52% increase due higher borrowing cost from year to-10%
year
-6145,12% The company Sold some secrab
1%
-11,75%
3%
-4,93% No major variance noted
3%
45%
Vertical Analysis
% of Varaince 2021 Varaince
Reason for variance
y and demand and changing the strategy of the company
-72%
6%
ministrative expense variances.
-7%
19%
ministrative expense variances.
1%
1%
0%
-4%
0%
3%
3%
1%
-7%
1%
0%
0%
-2%
1%
49%
-4%
0%
0%
0%
0%
49%
-4%
CIE
Currency – SAR
as at 31 Dec 2022
Capital
Balance as at 1 January 2021
Profit for the year
Other comprehensive income
Total comprehensive income
Balance at 31 December 2021
Profit for the year
Other comprehensive income
Total comprehensive income
Dividends
Balance at 31 December 2022
Statutory reserve
47.500.000
47.500.000
–
47.500.000
12.500.000
12.500.000
–
12.500.000
Retained earnings Total
61.310.850
121.310.850
44.835.231
44.835.231
44.835.231
44.835.231
106.146.081
40.817.029
40.817.029
166.146.081
40.817.029
40.817.029
(52.709.741)
94.253.369
–
(52.709.741)
154.253.369
–
CF
Currency – SAR
as at 31 Dec 2022
OPERATING ACTIVITIES
Profit before zakat
2022
41.021.032
Adjustments for:
Depreciation of investment properties
47.435.600
Depreciation of property and equipment
2.410.469
Amortisation of intangible assets
432.843
Finance charge long term borrowings
6.051.629
Finance charge on lease liabilities
11.333.383
Share of profit from investment in a joint venture associate
(2.746.621)
Share of profit (loss) from investment subsidiaries
(2.191.149)
Reversal of liability no longer payable
(737.638)
Provision for employee benefits obligation
205.894
(Reversal) provision for doubtful debts
(1.007.263)
102.208.179
Change in operating assets and liabilities:
Amounts due from related parties
11.681.899
Amounts due to related parties
12.776.032
Accounts receivable
(1.039.695)
Prepayments and other assets
Accounts payable, accruals and other payables
Deferred rental income
343.874
(11.269.639)
969.033
115.669.682
Zakat paid
Employee benefits obligation paid
Net cash generated from (used in) operating activities
(1.511.604)
(216.846)
113.941.233
INVESTING ACTIVITIES
Additions to investment properties
(10.913.314)
Additions to property and equipment
(1.247.505)
Additions to intangible assets
Additions to investments in subsidiaries
Proceeds from disposal of investment properties and property and equipment
(97.761)
(21.028.240)
–
Dividends received from subsidiaries
6.805.000
Dividends received from a joint venture
2.000.000
Net cash (used in) generated from investing activities
(24.481.819)
FINANCING ACTIVITIES
Proceeds from borrowings
136.787.713
Repayment of borrowings
(129.794.682)
Dividends paid
(52.709.741)
Payment of finance charges
(4.986.074)
Payment of principal portion of lease liabilities
(9.927.802)
Net cash generated from (used in) financing activities
(60.630.585)
Net increase (decrease) in cash and bank balances
28.828.829
Cash and bank balances at the beginning of the year
5.904.096
Cash and bank balances at end of year
34.732.925
–
Direct cost
Direct cost
Where this is charged in the Profit and loss accounts
Where this is charged in the Profit and loss accounts
The different is due from non-cash inte
Total Finance cost as per PL is SR 9.4 million, where as in cash flow its around SR 17M
12.397.487
(10.874.127)
(2.046.958)
(11.269.640)
we have Gain on sale of investment properties, where is the proceed for the sale of investment
We have netted against other investment cash flows. Due to acquisition of companies
e different is due from non-cash interest accruals and differ from the finance cost in the profit and loss due to timing differences or capital
Opening
Provision
Payment
Closing
Zakat movementIntangible
1.477.000
1.072.171
271.500
97.761
(1.511.604)
(432.843)
236.895
737.089
–
timing differences or capitalization.
% share
Subsidiary Alliance Company Limited
Subsidiary Asset Property Management Company
Subsidiary Investment and Real Estate Company
Subsidiary Aldrees Project Joint Venture
Subsidiary Holding company
Subsidiary Privte office company
Subsidiary Real Estate Investment Company Ltd
80%
100%
75%
70%
75%
70%
60%
Joint venture
Saudi Mining XXXX
50%
Aldrees share
Other adjustments to match the investment account
16.161.505
20.000.000
11.950.837
5.822.109
12.525.881
5.371.892
14.989.052
86.821.274
12.929.204
20.000.000
8.963.128
4.075.476
9.394.410
3.760.325
8.993.431
68.115.973
50.605
(2.614)
5.958
1.300
(134.827)
18.434
(61.143)
12.979.809
19.997.387
8.969.086
4.076.776
9.259.583
3.778.758
8.993.431
68.054.830
13.083.360
6.541.680
(7.266.202)
(724.522)
67.330.308
–
Unadjusted
Adjusted
Prepayments And Other Current Assets
2022
15.419.418
1.797.977
1.749.132
1.492.019
1.381.545
1.204.901
1.030.950
663.691
2.925.906
27.665.540
–
Accrued Revenue
Prepaid rent
Advances to Suppliers
Advances for Jointly controlled projects
Bank Gurantee
Contract assets
Employee Recievable
Prepaid interest
VAT receivable
Others
Accounts Payable, Accruals And Other Payables
2022
16.369.781
4.303.212
1.286.537
21.959.529
–
Trade Accounts Payables
Gurantee deposits
Accrued Expenses
Investment In Joint Venture
2022
12.578.791
2.571.190
(2.000.000)
13.149.981
At 1 January
Reclassification from due from associates and subsidiaries
Share of profit
Dividends
At 31 December
Investment properties
2022
Cost
At 1 January 2022
Additions
Transfer
At 31 December 2022
Accumulated depreciation
At 1 January 2022
Depreciation for the year
Transfer
At 31 December 2022
Land
Building
15.682.964
1.383.750
17.066.714
224.010.847
12.017.742
236.028.589
–
12.897.626
47.435.600
60.333.226
Net book value as at
31-Dec-22
17.066.714
175.695.364
Leasehold
improvements
Furniture and
fixtures
Cost
At 1 January 2022
Additions
Disposals
At 31 December 2022
4.507.730
1.170.567
5.678.297
755.724
3.989
759.712
Accumulated depreciation
At 1 January 2022
Depreciation for the year
Disposals
At 31 December 2022
1.157.337
2.054.093
3.211.429
523.190
202.308
725.498
Net book value as at
31-Dec-22
2.466.867
34.214
Property And Equipment
Intangible Assets
2022
2021
Cost
At 1 January
Transfers
Additions
At 31 December
2.424.043
97.761
2.521.804
2.225.803
198.240
2.424.043
Accumulated amortisation
At 1 January
Amortisation for the year
At 31 December
1.351.872
432.843
1.784.715
907.044
444.828
1.351.872
737.089
1.072.171
Net book value at 31 December
Cash And Cash Equivalents
Bank balances
Cash in hand
2022
2021
34.713.925
19.000
34.732.925
5.885.096
19.000
5.904.096
2022
2021
26.357.639
(2.450.615)
23.907.024
25.317.944
(3.457.878)
21.860.066
Accounts Receivable
Account receivables
Less: provision for doubtful debts
Movement in the provision for doubtful debts was as follows:
Balance at beginning of the year
(Reversal) charge for the year
Balance at the end of the year
Zakat
3.457.878
(1.007.263)
2.450.615
3.297.993
159.885
3.457.878
2022
2021
1.477.000
271.500
(1.511.604)
236.895
861.495
1.523.833
(908.328)
1.477.000
166.858.035
12.143.369
(5.708.778)
664.698.218
(827.130.863)
10.859.980
271.500
113.020.505
55.256.823
55.803.815
697.233.221
(860.361.063)
60.953.300
1.523.833
2022
2021
781.248
683.995
Account: Provision for Zakat
Beginning balance
Provided for the year
Paid during the year
Ending balance
Ownerâs equity, beginning
Profit before zakat
Opening provisions and other adjustments
Non-current liabilities
Non-current assets
Zakat base
Zakat at 2.5% of adjusted profit / Zakat base
Employee Benefits Obligation
Balance at beginning of the year
Current service cost
Interest expense
Amount recognized in profit or loss
Financial assumptions
Demographic assumptions
Experienced adjustments
Acturial re-measurements (gains) losses
Benefits paid during the year
Balance at the end of the year
176.895
28.999
205.894
25.292
(30.440)
(5.149)
(216.846)
765.148
191.666
23.969
215.635
(55.251)
(37.932)
(93.182)
(25.199)
781.248
2021
15.675.969
1.309.968
1.771.546
1.492.019
1.635.511
1.161.472
1.279.442
392.194
2.947.419
27.665.540
–
2021
28.194.983
4.201.948
832.238
33.229.169
2021
1.771.735
11.250.000
2.357.056
(2.800.000)
12.578.791
Capital work in
progress
11.516.973
9.529.564
(12.017.742)
9.028.795
–
Total
251.210.784
10.913.314
262.124.097
12.897.626
47.435.600
60.333.226
9.028.795
Office
equipment
201.790.872
Total
805.045
72.950
877.994
6.068.498
1.247.505
7.316.003
536.190
154.069
690.258
2.216.716
2.410.469
4.627.185
187.736
2.688.818
–
Revenue
Rental Income
Service Charges
Management Fee
Development Fee
Others
2022
2021
85.228.616
2.084.937
3.509.723
90.823.276
96.457.177
1.422.568
923.923
98.803.668
2022
2021
47.435.600
2.410.469
6.051.629
974.665
944.190
925.021
1.840.837
60.582.411
2.972.278
45.290.145
774.238
8.442.341
2.470.292
1.167.989
865.926
3.775.521
65.758.728
2022
2021
4.396.830
448.535
227.344
23.447
32.664
184.176
5.312.995
5.153.459
530.531
430.880
142.628
88.533
320.995
6.667.025
2022
2021
11.333.383
6.051.629
4.262.222
9.660.717
3.382.539
(301.276)
Direct Cost
Land Rent
Depreciation of investment properties
Depreciation of property and equipment
Intrest Expense from Bank Borrowings
Security Services
Repair and Maintanance
Cleaning Services
Others
General and administrative expenses
Employee Cost
Depreciation and Amortization
Professional Fee
IT Cost
Travelling expense
Management fee
Others
FINANCE CHARGES
Finance charge on lease liabilities
Finance charge long term borrowings
Movement in derivative financial liabilities
Others
153.472
21.800.706
343.560
13.085.540
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