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Regarding the approval of the company’s annual financial statements for the year ended 31/12/2022, attached are the following:
- Annual Consolidated Financial Statements according to Boursa Kuwait templates.
- Consolidated Statement of Financial Position.
- Consolidated Statement of Income.
- Independent Auditor’s Report on the Annual Financial Statements for the year ended 31/12/2022.
Regarding the initial cash offer received by the company to buy all the shares of the subsidiary company (Ritim Istanbul Company) in the Republic of Turkey there is currently no financial impact on the financial statements of the company. In case that the transaction is completed at the offered price without any change, the following is expected to be realized based on the subsidiary’s financial statements balances included in the consolidated financial statements as of December 31, 2022
1 Direct profit from the disposal of that subsidiary amounting to almost 130 thousands Kuwaiti Dinars.
2 Reclassification of the foreign currency translation adjustment losses for that subsidiary amounting to KD 22 million as of 31 December, 2022 that was previously included in the parent company’s statement of shareholders’ equity to the statement of income which will result in the following:
a No financial impact on the total shareholders’ equity of the company.
b No financial impact on the book value per share of the company.
c Loss recognition in the consolidated statement of income amounting to KD 22 million which will be booked in the fiscal period where the transaction will be executed, which result from the reclassification of those losses from the foreign currency translation reserve in the company’s shareholder equity to the statement of income in accordance with the International Financial Reporting Standards. Those losses have been already calculated and recorded in the company's financial statements during previous years within the foreign currency translation reserve in the company's shareholders equity.
The financial impact may differ upon the completion of the transaction according to the actual date of executing the transaction and the financial position of the subsidiary at that date, which will be disclosed later on at the time.
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