Metal and Recycling K S C Public : Financial Statements for period ended June 30 2021

METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)

AND ITS SUBSIDIARIES

STATE OF KUWAIT

INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

FOR THE PERIOD ENDED JUNE 30, 2021

(UNAUDITED)

WITH

REPORT ON REVIEW OF INTERIM CONDENSED

CONSOLIDATED FINANCIAL INFORMATION

METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)

AND ITS SUBSIDIARIES

STATE OF KUWAIT

INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

FOR THE PERIOD ENDED JUNE 30, 2021

(UNAUDITED)

WITH

REPORT ON REVIEW OF INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

CONTENTS

Report on review of interim condensed consolidated financial information
	Pages
Interim condensed consolidated statement of financial position (unaudited)	3
Interim condensed consolidated statement of profit or loss and other comprehensive income (unaudited)	4
Interim condensed consolidated statement of changes in equity (unaudited)	5
Interim condensed consolidated statement of cash flows (unaudited)	6
Notes to interim condensed consolidated financial information (unaudited)	7 - 17

REPORT ON REVIEW OF

INTERIM CONDENSED CONSOLIDATED FINANCIAL INFORMATION

To the Board of Directors

Metal and Recycling Company K.S.C. (Public) and its subsidiaries

State of Kuwait

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Metal and Recycling Company K.S.C. (Public) (the "Parent Company") and its subsidiaries (collectively the "Group") as of June 30, 2021 ,and the related interim condensed consolidated statements of profit or loss and other comprehensive income for the three months and six months periods then ended, and the related, interim condensed consolidated statements of changes in equity and cash flows for the six months period then ended. Management of the Parent Company is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard 34, 'Interim Financial Reporting'. Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of Review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim condensed consolidated financial Information Performed by the Independent Auditor of the Entity." A review of interim condensed consolidated financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As states in notes No. (8 and 21) about the interim condensed consolidated financial information, the Group's investment in an associate ("Real Estate Development and Development Company - W.L.L.") has been listed for an amount of KD 5,465,720 (December 31, 2020: KD 5,465,720, June 30, 2020: KD 5,456,110). It includes the Real Estate Development and Development Company - W.L.L. On a real estate investment in the Amghara area on which the parent company's factory is located, and the parent company's share of the real estate investment amounted to KD 3,426,400 (December 31,2020: KD 3,426,400, June 30, 2020: KD 3,422,560) and it was vacated in favor of the Ministry of Commerce and Industry. The associate has not written off the carrying amount of this investment, which is inconsistent with the requirements of IFRS.

Qualified Conclusion

Based on our review, except for the possible effect of the matter described in the Basis for Qualified Conclusion paragraph, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34.

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Report on other Legal and Regulatory Requirements

Furthermore, based on our review, the interim condensed consolidated financial information is in agreement with the books of account of the Parent Company. We further report that, to the best of our knowledge and belief, we have not become aware of any violations of the Companies Law No. 1 of 2016 as amended, its Executive Regulations as amended, or of the Parent Company's Memorandum of Incorporation and Articles of Association during the six months period ended June 30, 2021 that might have had a material effect on the Parent Company's financial position or results of its operation.

We further report that, during the course of our review, to the best of our knowledge and belief, we have not become aware of any violations of the provisions of Law No 7 of 2010 concerning the Capital Markets Authority and its related regulations during the period ended June 30, 2021 that might have had a material effect on the business of the Parent Company or on its financial position.

	Nayef M. Al Bazie
State of Kuwait	License No. 91-A
August 1, 2021	RSM Albazie & Co.

METAL AND RECYCLING COMPANY K.S.C. (PUBLIC) AND ITS SUBSIDIARIES

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED) AS OF JUNE 30, 2021

(All amounts are in Kuwaiti Dinars)

						December 31,
			June 30,	2020			June 30,
ASSETS	Notes	2021			(Audited)	2020
Current assets:
Cash on hand and at banks	3	2,956,088	3,487,748	3,767,186
Time deposits	4	1,051,697	1,047,054	1,020,953
Murabaha investments	5	29,715	29,715	29,715
Accounts receivable and other debit balances	6	4,352,738	4,977,590	4,026,379
Due from a related parties	7	49,000	48,600	18,400
Inventories			614,228		741,350		1,469,434
Total current assets		9,053,466			10,332,057			10,332,067
Non-current assets:
Financial assets at fair value through profit and loss		34,972	34,972	99,126
Investment in an associate	8	5,465,720	5,465,720	5,456,110
Investment properties		2,342,000	2,342,000	2,390,000
Property, plant and equipment		2,446,608	1,634,795	2,299,143
Right of use assets	9	2,125,525	2,371,124	415,216
Goodwill			406,889		406,889		406,889
Total non-current assets			12,821,714		12,255,500		11,066,484
Total assets		21,875,180	22,587,557	21,398,551
LIABILITIES AND EQUITY
Current liabilities:
Due to banks		-	-	216,404
Finance lease payables		-	970,000	1,070,000
Term loans - Current portion	10	888,000	1,158,000	1,559,500
Lease obligations - Current portion	11	611,155	672,133	192,204
Accounts payable and other credit balances	12	2,781,765	4,727,030	4,163,294
Due to related parties	7		1,551,258		847,688		788,206
Total current liabilities		5,832,178	8,374,851	7,989,608
Non-current liabilities:
Term loans - Non-Current portion	10	2,911,847	636,846	-
Lease obligations - Non-Current portion	11	1,881,056	1,878,844	247,154
Provision for end of service indemnity			1,071,603		1,021,963		1,038,801
Total non-current liabilities			5,864,506		3,537,653		1,285,955
Total liabilities		11,696,684	11,912,504	9,275,563
Equity:
Share capital		10,000,000	10,000,000	10,000,000
Statutory reserve		1,520,581	1,520,581	1,520,581
Treasury shares	13	(1,056,623)	(1,056,623)	(1,056,623)
Effect of change in ownership interest of a
subsidiary		402,450	402,450	402,450
Accumulated losses		(3,004,705)	(2,567,797)	(900,658)
Equity attributable to shareholders of the
Parent Company		7,861,703	8,298,611	9,965,750
Non-controlling interests			2,316,793		2,376,442		2,157,238
Total equity			10,178,496		10,675,053		12,122,988
Total liabilities and equity		21,875,180	22,587,557	21,398,551

The accompanying notes (1) to (21) form an integral part of the interim condensed consolidated financial information.

Msaed Ibrahim Al Houwly		Tarek Ibrahim Al-Mousa
Chairman		Vice Chairman and Chief Executive Officer

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