United Arab Emirates Fujairah Building Industries PJSC and its ...

Mar 12, 2017 - which would further enable us to reap the benefits of the Group as it grows by leaps and bounds in the nation's concepts of modernity and ...
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Fujairah Building Industries P.J.S.C. and its subsidiaries (the "Group") Fujairah - United Arab Emirates Independent auditor's report and consolidated financial statements For the year ended December 31, 2016

Fujairah Building Industries P.J.S.C. and its subsidiaries (the "Group") Fujairah - United Arab Emirates Table of contents Pages General information

1

Report of the Board of Directors

2&3

Independent auditor's report

4-7

Consolidated statement of financial position

8

Consolidated statement of profit or loss

9

Consolidated statement of other comprehensive income

10

Consolidated statement of changes in shareholders' equity

11

Consolidated statement of cash flows

12

Notes to the consolidated financial statements

13 - 40

Fujairah Building Industries P.J.S.C. and its subsidiaries (the "Group") Fujairah - United Arab Emirates General information Principal Office Address

: P. O. Box: 383 Fujairah - United Arab Emirates T: +971 9 222 2051 F: +971 9 222 7314 Email: [email protected]

Website

: www.fbifuj.ae

The Auditors

: Horwath Mak P. O. Box: 1650 Fujairah - United Arab Emirates

1

Report of the Board of Directors for the year ended December 31, 2016

Dear Shareholders, On the occasion of the end of fiscal Year 2016, on behalf of the Board of Directors, I am pleased to submit the Annual Report with the Audited Consolidated Financial Statements for the fiscal year ended December 31, 2016.

Principal activities of the Group: The principal activities of the Group comprise of the manufacture, marketing and distribution of rock wool insulation materials, concrete blocks, interlocks, kerbstones, and Terrazzo tiles, cutting, polishing, supply and installation of marble products, and extraction and processing of range of gabbro quarry materials.

Financial review: The Group has achieved revenue of AED 242.2 million for the year 2016 compared with AED 237.6 million for previous year 2015, which reflects an increase ofapprox. 2%. The Gross margin was 34.4% in 2016 compared to 34.2% in 2015. Consequently, the Group achieved a net profit of AED 15 million in 2016 compared to a net profit of AED 7.0 million in 2015 which reflects an increase of 114%. This increase in net profit is mainly attributed to the cost control and cost rationalization strategy adopted by the group during the year. The Total assets of the Group amounted to AED 409 million as of December 31, 2016 compared to AED 410 million as of December 31, 2015, while the total shareholders' equity has increased to AED 243 million as of December 31,2016 compared to AED 224 million as of December 31, 2015. The Group has managed to contribute positively to the development and prosperity of the national economy. Despite local and regional market volatility and challenges during 2016 and the tough competition in the field of building materials industry, the Group continued to strengthen its competitive position within the local and regional markets through maintaining high quality of its products and providing excellent customer service to clients, these factors have supported the company's activities providing sustainability to our operation. The group manufacturing units have also undergone significant developments through modernization, development and expansion projects to meet market requirement and UAE environmental regulations, in particular in Fujairah Rockwool Factory, the works accomplished during the year 2016 were as follows: •

Completion of project to shift, modernize the old production line from old factory site to the current location at AI Hayl Industrial area - Fujairah. This would eventually results in increase in the production capacity ofFRF.



Completion of