Independent Auditors’ Report Consolidated Statement of nancial Position Consolidated Statement of Profit or Loss Consolidated Statement of Comprehensive Income ‘consolidated Statement of Changes In Shareholders’ Equity, Consolidated Statement of Cash Flows Notes to the Consalideted Financial StatementsDeloitte. eee) Sitanrmn, # Groe ‘ek $9621 6550200 Indepenclent Auditors’ Report ams 014591, ‘To the shareholders’ Jordan Cement Factories Company (& Public Shareholding Limited Company) ‘Amman = "The Hashemite Kingdom of Jordan Disclalmer of Opinion We were engaged to audit the consolidated finandal statements of the Jordan Cement Factories Company and its subsidiaries (the Group), which comprise the ‘consolidated statement of inendel position as at December 31,2019, and the Snsoidated statement of profit or loss and comprehensive Income, consolidated ‘Statement of changes in equity and conselidated statement of cashflows forthe year {hen ended, and notes to the consolidated financial statements, ncuding 8 summary ‘of signieant accourtng policies. ‘Wie do not express an opinion on the accompanying consolidated financial statements Of the Group, Berause ofthe significance of the matters described In the Basis for Disclamer of Opinion section of our report, we have not been able to obtain sufiient 2ppropriate audit evidence to provide basis for an audit opinion on these ‘consolidated financial statements. Basis for Disclaimer of Opinion Property, plant and equipment and inventory, whichis carried at 3D 60 milion and So 19.9 malin inthe statement of financial postion respectvely, includes property, plant and equipmere and spare parts located in Rashaiyah of $0 35.5 milion and 5p'2.7 milion respectively which exhibits indicators of Impairment. Due to the ‘arrent situation, management has not determined if the recoverable amounts of {he property, plant and equipment and spare parts located in Rashadiyah fs greater than their carrying amount, which ‘constitutes departure from Intemational Financil Reporting Standards (IFRSe'). We were unable to determine the adjustments necessary to these amounts, i any. Note (24) inthe corsolidated financial statements indicates that the Group incutred 3 lose before tax of 30 48.7 million during the year ended December, 31 2019, hed ‘et current lables of 30 88 milion and net cash used in operations of JD 5.3 milion for the year then ended. The Company Nad also defaulted on some ofits outstanding ‘nancia obligations as at December 31, 2019. In performing thei assessment ofthe use ofthe going concer basi of accounting, the Boord uf Dhetuns have considered the Company's ably to cette fs current fand expected monetary oalgation for 6 period of 12 months from the financl Statements date, snd based on this assessment, the Company vill commence the process of fling or insolvency with the intention to reorganize the Company. The Group's ability to continue as @ golng concern Is dependent on the outcome ofthis process being successful. ‘as stated in Note (34), these events or conditions, along with other metters as set forth in Note (28, ladcate that a material uncertainty exsts that may cast signlicant {doubt on the Group's ality to continue as @ going concen.Deloitte. ‘omer matter ‘The accompanying consolidated nancial statements area translation of te original consolidation finance! statements which are in the Arabic language, to. which feference should be made, Responsibilities of Management and Those Charged with Governance for the Consolidated Financial statements ‘The Company's management is responsible forthe preparation and flr presentation Of the consolésted financial statements In accordance with IFRSS, and for such Internal control as ranagement determines Is necessary to enable the preparation ‘of the consoléated fancial statements that are free from material misstatement, ‘whether due to frauc or error. In proparing the consolidated financial statements, management is responsible for asgessing the Groups ability to continue as 2 going. concern, disclosing, as pplicable, matters felated to going concern and using the going concern basis of ‘ecounting unless management elther Intends to liquidate the Group or to cease ‘operations, or hos ne realistic altemative but todo 59, ‘Those charged with governance are responsible for overseeing the Group's ‘consolidated fnanckl reporting process. ‘Auditor's Responsibilities for the Audit of the Consolidated Financial Statements. Gur responsibilty Is to conduct an audit of the Group's consolidated financial Statements in accordance with International Standards on Audlting and to issue an fucitors report. However, because of the matter descibed in the Basis for Disclaimer of Opinien section of our report, we were notable to obtain sufcent Spproprite avait evidence to provide 2 basis for an audt opinion on these ‘consolidated financial statements. We are independent of the Group in accordance with the ethical requirements that are relevant to our suai ofthe financial statements In Jordan, and we have flied ‘ur other ethical responsibilities in accordance with these raquirements. Report on Other Legal and Regulatory Requirements ‘ue to liations of our work referred to In the Basis for Disclaimer of Opinion ‘Section of our repor we ware unable to determine whether the Company maintained proper books of accounts. ns Amman ~ Jordan 4 uty 4, 2020 TYotdan (ag ar‘December 31, ASSETS Note 2019 2018 Current Assets 2D, 1D. (Gash at banks 3 3,398,078, 91,826 ‘Recounts receivable and checks under collection 6 22/230,556 22,320'510 Inventory and spare parts 7 isisse277 Saran 615 (Other debit balances 8 3s03.3s1 4,432,929 Held forsale assets, ° 7100000 “Total Current Assets 36,386,242 _ 62,406 880 ‘Mon-current Assets Broperty and equipment - net 10 59,963,372 73,053,455, Financal assets ot far value srough ‘Comprehensive income u 167,984 171,949 ‘soodw 2 2495/9085 2,495,945 Employees’ housing and car bans iB 771,628 1,628,767 Fight of use assets Fr 3,955/578 Z Deterred tox esses 15/4 1204672 __ 17,353,102 “Total Non-Current Assets 6,559,189 94,703,218, TOTAL ASSETS ipa 945 431, 157,190,098, LIABILITIES AND OWNERS’ EQUITY ‘Current Liabilities Bue to banks: 16 29,486,127 33,187,743 ‘Short-term accounts payable 47 58,368;805 47,331,008, (ther credit balances’ 18 tea7i'4s2 ——19,7441063 Loan from a related party 13 24,500,000 . Long-term loans maturing wthin one year 20 11,250,000 8,193,723 Income tax provision 15a ‘a1,653 ‘70,847 Provision for restructuring 2 2,075,508 1,317,672 ‘Lease lability ~ current portion 4 41578,966 “Total Current Liabilities $44,373,549 __ 110,445,054 ‘Non-current Liabities ‘Obligations for employees post-retirement health insuronce benemts 22 28,335,000 Long-term leans 20 15,750,000 tease labity ~ non-current portion it Total Hon-current Labillies 50,790,105 44,085,000. Total Liabilties 195,163,654 154,530,054 ‘Owners’ Eaulty Pald-up capital 23 60.444,450 60,444,060 “Treasury stock 23 (323) 323) Fair value reserve 69,566) (ssi) ‘Accumulated (losses) 34 (435,739,787) (62,231,177) Nek (Deft in Shareholders’ Equity (75,365,216) (1,852,651) ‘Non-contraling interest. 26 546,993 "4,512,695 Net owners’ Equity Tmo 218,223) 2,660,088 ‘TOTAL LIABILITIES LESS (DEFICIT) IN OWNERS’ EQUITY __ 124,945,431 157,190,098 THE ACCOMPANYING NOTES FROM (1) TO (36) CONSTITUTE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS AND SHOULD BE READ WITH THEM AND WITH THE [ACCOMPANYING AUDITOR'S REPORT -3-Sales Cost of sales ‘Gross Profit (Loss) from Sales ‘sling and marketing expenses General and administrative expenses Operating (Loss) Interest income Provision for rehabiitaton of quaries and ‘environment. protection Provision for employees’ vacations Financing costs Lawsutts provision (Provision) released from restructuring provision Inventory and spare parts impalrment provision Hela for sale assets Impairment provision Post-retirement health insurance interest and expense Gain from foreign currency revaluation Gain on sale of property and equipment (other income (oss) for the Year before Income Tax Income tax (expense) (Loss) for the Year ‘Agributable to: Company shareholders Non-coatrolting interests ‘Shareholders’ Basic and Diluted (Loss) per Share for the Year For the Year Ended December 31, Note 2019 20. 63,432,024 (62,704,484) 4 25 __(9,478,385) (10,586,529) 210,652 18 (30,408) (49,288) (5,827,167) 1s G 210/012) 21 (4a/883)520) 7 (6,860,412) 3 G69,754) 22 (5,542,417) 250,916 1,408,162 “08,031, (8,681,746) 1s __6/435,381 (65,117,127) (65,187,925) 26 70,798 (65,107,127 soyrus twos) 2010. 7D. 61,672,790 (74,533,722) (1860,932) (2,186,228) (8,819,365) (20,886,525) 128,997 (33,600) (27,329) (5,009,432) 13,338,115) 9,500,000, ‘@8,108) (1,374,000) ‘11,947 1952189 710,388 127,883,588) (6,698,452), 34,582,040) (25,658,585) 1,076,545, = G4.582,040) so / Fs. 159) THE ACCOMPANYING NGTES FROM (1) TO (36) CONSTITUTE AN INTEGRAL PART OF THESE. CONSOLIDATED FINANCIAL STATEMENTS AND SHOULD BE READ WITH THEM AND WITH THE [ACCOMPANYING AUDITOR'S REPORTJORDAN CEMENT FACTORIES COMPANY LI PANY avian — Tt DAN, Note (Loss) forthe year ‘Add: Other comprehensive income items that wll ‘ot be reclassified tothe Income statement in Subsequent periods: Net (loss) from financial assets at far value through ‘comprehensive Income Actuarial losses for post-retirement health insurance benefits 2 ‘otal Comprehensive (Loss) ‘Total Comprehensive (Loss) Attributable to: ‘The Company's shareholders "Non-controllers’ Interests For the Year Ended December 31 2019 2016 2» 3D (65,117,127) (64,582,040) 6,955) (4,746) 8,320,685) __(2,527,000) (73,481,767) _(37,113,786 (73,512,565) (28,190,331) 70,798 1,076,545, 73,481,767) _ (37,183,786) ‘THE ACCOMPANYING NOTES FROM (1) TO (36) CONSTITUTE AN INTEGRAL PART OF THESE. CONSOLIOATED FINANCIAL STATEMENTS AND SHOULD BE READ WITH THEM AND WITH THE [ACCOMPANYING AUDITOR'S REPORT.“LuodmY SNOLIGNY ONIANVEHOODY 3H HLIM ONY HSHL HLIM avs 39 NCHS GNY SUNAWALVAS TWIONWNLE GELVOTIOSNOD 283HL JO Iva TVHDINE NV SLMULLSNOD (98) OL (T) NOwd SELON OVIANVEWOODY BEL 1 SBURPID J eI anpieieus —paenumoy —enenses — Awams —fnessin Goes ra 360%crs nwa pg ar Sree ee Ra upreercen areca Chsaieearise a =o Seta acme getn eee marae Eas eens nomen ‘ezrease rerease) Mn verona spare pets ‘tee ear) a pe or et Mo orm any cng Acer tod or au path, Irene te psd Me ash Flows (ue in) Opereng Heth ‘ASH FLows FROM MWESTING mTUTIS: ‘hungeim propery and ape. Scere nt eprom eae "Net Cash lms (sadn fem Investing Acts (Payments) re ans Irae neo ae pie Did ted ty cies eoen by paments (Secrennicezeem et bake et ca Flows rom Fanci Ati Net neers (Ocean) Cn ot nts (ash a ants “bop o te yor en onetar Tnsactons “rrsers fom popry and eqdpmato hel ors ete net “rensers rm vero t ol alas "Wafer from projets neg repr ae equipment 601,746) aaa) i063) ra 1629739 1o,496018 1 Sei) 2 Cena hi dazsses) te Giess) 23.258) eer “210,852 052) 2 gasszas) 250,000 Geri @arse rot eta 401,580 10 iaiass onan cans 333815 ae ae osm 28997) am hese (6574247) aaa (e3zso11) Giaet00) (990709) 5.025575) 07 550) “osseso 2897 os. 822 (nitoiee) (6.008152) (1327000), oe ra es aaa ‘Te ACCOMPANYING NOTES RCH (8) T (26) CONSTITUTE AN ITEGRAL PART OF THESE CONSOLIDATED FINANCIAL “STATEMENTS AND SHOULD BE READ WITH THEM AND WITH THE ACCOMPAITING AUDITORS REPORT,JORDAN CEMENT FACTORIES COMPANY. (A IRIVATE SHAREHOLDING LIMITED COMPANY) ‘AMBAN-JORDAN IAL STATENI Tordan Cement “actories Company (Subsequently herein referred to as "the Company") was established in 1951.99 a Jordanian public shareholding limited Company and was registered atthe Ministry of Industry and Trade under Number (25) on June 10, 1964, The Company's authorized and Issued capital was increased ‘gradually to beccme 3D 60,444,460 represented by 60,444,460 shares at a par {Value of one Jordanian Diner per shate. The Company's permanent address is Al- Funai, Shaker Cle, P.0. Box 930019, Amman ~The Hashemite Kingdom of Jordan. “The Company's ran objectives are the production, manufacturing, andthe trading of the cement Insle the Hashemite Kingdom of Jordan and autsde't,elther directly frthrough intermediaries with conditions and methods thatthe Company sees Mt. “The Company Is $0.275% onned by Lafarge ~ France (Parent Company). “The Company's Board of Directors approved the consolidated financial statements con July 2, 2020, 2.__Slanifcant Accounting Policies Financial Statems “The consolidated Snancial statements have been prepared in accordance withthe standards issued "by the Intemational Accounting Standards Board ‘and interpretations isued by the International Financial Reporting Interpretation ‘Committe (TFRIC). “The consolidated financial statements of the Company and its subsidiaries are ‘resented in Jordanian Dinar, which is also its functional currency. “The consolidated nancial statements have been prepered in accordance withthe historical cost principle except for finanlal assets and financial ables, which fare stated at for value at the date ofthe conselidated financial statements, “The accounting paiies adopted in the preparation of the consolidated financial statements are consistent with those applied in the year ended December 31, 2018 except Tor te effect of adopting the new and modiNed standards stated Notes (3-8) and (3-b). ‘The. consolldated financal statements Include the financial statements of the Company: and it subsidiaries under Its control. Moreover, contol is achieved ‘When the Compeny has authority over the tnvestee, its exposed to varable Teturns or holds ght for is parbeipation inthe investee company, and itis able {to exercise ts authonty over the Investee company. In addon, the wransactons, Galances, income and expenses between the Company and ts subsidiaries oe ‘The subsidiaries! results of operations are consolidated In the consolidated statement of proft or loss from the date of thelr acquisition, whichis the date on which effective control over the subsidiary takes place. The results of dlsposal of the subsidiaries are consolidated in the consolidated statement of profit or loss. Up to the disposal date, which isthe dete on which the Company loses control ‘ver the subsidiaries‘Control is achleved wien the Company: sPP"as the abiity to contro! the Investec; + exposed to variable returns o has the ght to vrible returns resuiting from ‘+ Has the ability touse its power to inuence the Investee'sretums. “The Company reassess whether it controls the Investee companias while the facts and ‘Greumatancee Indicate thet there are changes to one or more control check points ‘ferred to above. 1 Rs voting ohts become ls than those of the majorty in any of the investor companies, the Compe shal have contrel power when votng rights suice to grant TEE aby to dec he actives of the related subsidy unfatrally- The Company {ates into Consideration ail the facts and creumstances in assessing whether the Gommpany nes voting rghts in the investe that eneble t to exercise contol or not ‘Among these facts and dreumstances +The size of the company’s holding of voting rights relative to the size and Etsution of other voting Fights + Potential votng rats held bythe Company and any eter voting ahs or Ud parties; “+ Rights arising from other contractual arrangements; and “+ Any additonal facts and circumstances Indicating that the Company has or does ‘ho have em exsting responsiblity for directing the retevant actvits atthe time ‘of making the required cecsions, including how to vote at previous General ‘Assembly meetings. \When the Company loses control over any ofits subsidiaries, the Company: Derecogrizes the assets ofthe subsidiary (including goodwl) and labile; Derecognizes the canying amount of ony uncontraed interest; Derecognizes the cumulative transfer diferences recognzed In equity; Derecognizes the far value ofthe consideration recelved; Derecognizes the fair value of any investment Rel Derecognizes any surplus or dct in the consaidated statement of profit r loss Redoates the companys equity pewgusty recegnizd in the consolidated Statement of comprehensive income to the eonsoidated income statement oF Fetaned earnings appropriate “The subsidaries' financial statements are prepared for the same reporting year using the sama accounung plies hose ofthe pent conpony. he subir adopt [Sccounting policies that sifer Irom those of the parent’ company, the necessary ‘Sdjustments are mode to the financial statements ofthe Subsidiaries to confirm with the accounting polls: of the parent company. NNon-controiing Interest represents the portion that the Company does not own from the subsidiary compares’ ners equty = The Company has as of December 31, 2019 and 2018 the following subsidiaries In dreck or inditect way! ald up Percentage Principal «—~lace of, company’s Name. Capital Ownership _‘Acivty Were ‘Arabian Concrete Supply Company 41,900,000 51% Manufacturing Amman Al-Fuhais Green Heights Company Real Estate Real Estate Amman evelopment ** 5000 = 100 vestments * Arabian Concrete Supply Company (subsiiany company) incorporated the Arabian Specialized “Tranezortaton Company on Moreh 10, 2011, whieh is owned by the irablan Concrete Supply Company and thay bath conduc thelr operations in Jordan.+ The Cement Factories Company established Al-Fuhels Al Khadra Real Estate Development Comsany on 30 July 2018 with an authorized capital of 3D 30,000 and paid JD 15,009 as of December 31, 2019. The Company has not conducted any Sperationat actvty to date The subsidiary Company's balances as of December 31, 2019 and 2018 was as follows: December 31, 2029 Zeseis—“Tiabities_Revenues_Bxpenses 30 30 0 ‘rab Concrete Supaly Company ‘after consoldation with Arab 1D Specialized Transport Company 30,410,249 23,457,970 38,433,442 38,258,856 AAl- Fubais Al~ Khadraa Real Estate Development Company 15,000 2 31, 2018 Expenses Ts = event 30 3 ‘arab Concrete Supaly Company after consolidation with Areb 2 Specialized Transport Company 24,415,471 18,700,884 40,593,689 38,256,552 ‘Al- Fuhals Al- Khadraa Real Estate Development Company 15,000 - - ‘The folowing are te significant accounting policies adopted ‘Financial Instruments Financial assets and ‘financial iabllties are recognized In the Company's consolidated statement of financial position when the Company becomes & party to the contractual provisions of the instrument, Financial assets end financial Habilities are initially measured at fair value, Transaction costs that are directly attrbutable to the acquisition or issue of ‘inanctal assets and nana abilities are added to or deducted from Ue Fai value ofthe financial assets or financial lists, ss appropriate, on inital recognition. inancial assets: inanlal assets are recognised in the Company's statement of nancial pesition ‘when the Company becomes a party to the contractual provisions of the Instrument. Fnandal assets are initially measured at far value. Transaction costs that are clrecty atributable to the acquistion or Issue of financial assets (except for financial assets at far value through statement of profit or loss) are aided to (or deducted from the fair value of the financial assets, a5 approprlate, on inl recognition ‘Aitrecognisea nancial assets are measured subsequently In tetr entirety ac ether ‘amortised cost or fair value, depending onthe classification ofthe financial assets, -10-‘lassication of nancial assets Debt instruments that meet the folowing condtions are measured subsequently at amortised cost “+ The financial assot is hold within a business model whose objective is to hold financial assets n order to collect contractual cash flows; ‘+ The contractual terms of the financial asst glve rse on specified dates to cash flows that are slely payments of principal and interest onthe principal amount outstanding. All ther financial assets are measured at fair valve. Amortized cost an effective interest mathod ‘The effective interset method ie @ method of caleuating the amortised cost of @ bt instrument ard of allocating Interest income over the relevant period, ‘The effective interest rate isthe rate that exactly discounts estimated future cash receipts (including al fees and points paid or recelved that form an integral part ofthe effective intrest rate, traneaction costs and other premiums of discounts) ‘excluding expectec credit losses, through the expected ife ofthe debt instrument, ‘or, where appropriate, a shorter period, to the gross carrying amount of the debt Instrument on inital ‘recognition. For'purchased or onginated credi-impaired financial assets, 9 credltadjusted effective interest rate Is calculated by discounting the esimated future cash flows, Inding expected credit losses, £9 the amortised cost of the debt instrument on intl recognition, ‘The carrying amount of financial assets that are denominated in 2 foreign currency 's determined in that foreign currency and translated at the spot rate at the end ‘of each reporting reriod. For nancial assets measured at amortised cost that are not part ofa designated hedging relationship, exchange differences are recognised In concolidated statement of proft or lose, Impairment of inancinl assets ‘The Company recognises a loss allowance for expected credit losses (ECL) on trade receivables. The amount of expected credit losses Is updated at each reporting date to refiect changes: In creat rik since inal recognition of the respective financial intrumert. ‘The Company always recognises ifetime expected credit loss for trade receivables ‘The expected credit loses on these financial assets are estimated using provision matrix based on the Company's historical credit loss experience, adjusted for factors that ate specific to the debtors, general economic conditions and_an ‘assessment of both the current as well as the forecast direction of conditions at the reporting date, Including time value of money where appropriate. For all other financial instruments, the Company recognises lifetime expected ‘credit loss when fre has been a significant increase in credit risk sine Inia Fecognition. Lifetine expected credit loss represents the expacted credit losses Instrument Provision for credit losses ‘The Company has adopted the simplified approach to recognize expected credit losses ver the life ofits receivables as permited by TFRS 9. Accordingly, non- Impaired trade receivables that do not contain a significant financing component have been classified as part of stage 2 with the recognition of expected credit losses over ther etme, -n-| provision for the expected credit loss should be recognized over the Ife of the financial Instrument the credit rik on thet nanl instrument Increases Substantially since the ins recognition and the expected credt oss Is an ‘SXpected weighted estimate ofthe preset value ofthe cred oss. Ma values measured asthe present val o tho difference between the cashflows due to the {Company under tre contract ond the cash Nows that the Company expects to Tecale aang from the expectation of several future economle scenarios, Uiscounted atthe efecive interest rat of the asset ‘The Company assesses whether there is objective evidence of impairment on an Incvidual basis for each asset of individual value ond collectively for other assets that are not indivcualy significant. Provisions for loss af ret losses are presented asa reduction ofthe total carrying amount of financia assets at amortized cost. ute oft The Company writes of financial asset when there is information indicating that the debtor is in sovere financial difcuty and there is no realistic prospect of recovery, £9. when the debtor has been placed under liquidation or has entered Into bankruptcy proceedings, oF the ease of trade receivables, when the amounts are over signifcanly overdue, whichever occuts sconer. Financial assats written (ff may stl be su2ject to enforcement activities under the Company's recovery procedures, taking into account legal advice where appropriate. Any recoveries made are recognised in consolidated statement of profit r loss. De:tecoanition of nancial assets ‘The Company derecognises 0 financial asset only when the contractual rights to the cath flows from the asset expire, of when I transfers the financial asset and Eubetantilly all te risks and rewards of ownership of the asset to another entity Ifthe Company ne ther transfers nor retains substantially ll he risks and rewards of ownership and continues to control the transferred asset, the Company Fecognises its retained Interest in the asset and an associated lability for amounts Iemay have to pay. Ifthe Company retains substantially al the sks and rewards of ownership ofa transferred fnancal asset, the Company continues to recognise the financial asset (on de-recagnition ofa financlal asset measured at amortised cost, the diference between the asset's carrying amount and the sum of the consideration recived ‘and receivable le ecognised in consolidated statement of profit or fos. Ctassincation as debt or equity instruments Debt and equity instruments are clossified either as financial labiltias or as equity in accordance withthe substance ofthe contractual arrangements, the definitions of the financial instrument and the equity instrument. uly in ‘The equity Instrument defines contract thet evidences ownership of the Temaining shares of an entity's accate after deducting al lates. The equity Instruments Issued are recorded withthe proceeds recelved net ofthe direct ssue, cost, “The re-acqulstion of the Company's equity instruments i recognized and recognized directly In equity. No gain or loss is Fecognized inthe Income statement ‘when purchasing, sling, Issuing or canceling the Company's equity Instruments. Refinancial labiiee are subsequently measured at amortized cost using the ‘tfetive interest method oF at fal value through the statement of profit or loss. Financial lablites that are not (1) those that are acquired in a business combination, (2) held for trading, or (3) designated at fair value through the Income statement, are subsequently measured at amortized cost using the tffective Interest method. ‘Trade and other payables classified as “financial liabilities are measured initially at flr value less tansaction costs, and are subsequently measured at amortized fast using the effective Interest method. Interest expense i recognized on an effective yield best. ‘The effective interest method isthe method of calculating the amortized cost of 3 financial lability and allocating Interest expense over the period in question. The fective interest rate Is the rate that exactly discounts expected future cash ‘payments within te expected life ofthe financial obligation ar, where appropriate, 8 shorter perio, ‘The Company derecognises financial lablitles when, and only when, the CCompany’s ebligatons are discharged, cancelled or have expired. The difference between the carrying amount of the financial labilty Feturn becomes unconditional, as only time passes before payment is due LUnder the terms cf the Company's sales contracts, customers have the right of Felurn At the pot of sale the return laity and the corresponding adjustment bre recognized for the goods to be returned. At the sare tne, the company Is tntilled to recover the goods when the customer exercises is right of return and hus recognizes fs right in the returned goeds as an amendment to the cost of Sales, “The Company uses Itz accumulated historical experience to estimate the ‘number of returns at the portfetio fevel using the expected value method. Tt Fighly probable tht there wil be no significant reversal of the cumulative income recognized under the fed level of returns compared to previous years For some customers, goods are sold retroactively on the basis of 12 months of {tal soles, Sales revenue is recognized based on the contrat price less estimated fscounts, The Conpany uses its accumulated historical experience to estimate the fiscounts and the evenue e recognized tothe extent that Is probable that there tnirbe no material reversal obits for the expected dlscounts are recovered on ‘Snounts payable in customers in respect of sales made durin the ves ‘The Company records the consideration payable to the customer (inclusion fees {nd expenses Tor the promotion of goeds) occurring In conjunction with the purchase of goods from the Company as a reduction of the selling price and is Fecognized as a charge if the amount payable to the customer for a separate good ‘or service provided ta the Company by the customer within seling end distribution expenses. » Curent reevables at du yet 1.374035 11,001,609 30 days + 60 days tojses.r32 2,847,287 61 days - 90 days 130234 2,511,656 91 days ~120 days 11386637 1,767,581 More than 120 days 695,167 __ 13,851,488 “otal isos.80s 2,069,661 “The Board of Director approval to write-off these accounts receivable during 2019, “The Company stucles the aging ofthe receivables and the suficiency of the booked provision atthe end of each financial period, “There are credit concentratons In the Company's account receivables for the first ten major customers the: represent 2486 ofthe total accounts receivable as of December ‘3u, 2019 (37% ofthe total sccounts recelvable as of Decernber 2018). -2-“This item consists ofthe following) December 31, 0 0 Spare parts * 14,121,708 15,396,281 Finished goods 5178/846 —5,043,182 Work in process 6,427,125 12,454,261 Raw materials 2,743,982 4,156,477 Fuel 4,006,101,__3.454,487 32,477,762 40,504,688 Provision fo slowing moving Items ** 12,623,485) _(5,763,073} 19,854,277 34,741,615 ‘According to the Board of Directors decision, the company transferred spare parts belonging tthe second production line inthe Funais plat in an amount {8F30 572,923 toheld forsale assets, ‘The movement onthe provision for slow moving items is as follows: 2019 2018 1D Fry ‘Balance - beginning ofthe year 5,763,073 5,714,965 Provision during the year ~ net 6,860,412 Balance ~ End of the Year 12,623,485 “This fem consists ofthe following: —_ December 31, 2019 2018 30. 30 Contractors receivables and advances a2i4e 3,785,969 Prepaid expenses 036,04 4,024,511 Refundable deposts 7713778213, Sales tax deposits 725219 563,050 others 337,851 273,186 —a_ Cee Tn accordance with the decision ofthe Company's Board of Directors to sel the second Hine ofthe AlFutals plant caring the year 2019, the property and equipment belonging te the second production line atthe Fuels plant in addition ta the related spare parts ware reclassified to held for sale assets in the amount of 3D 10,769,754, The reclassification occurred atthe net carrying amount or the net realizable value, whichever 's lower. During the year 2019, the Company recorded an Impairment expense for the held for Sele assets In an amount of 2D 3,669,754, and the net carrying value reached JD 7.1 million, This was done according to a Study prepared by the management thet reflects the fair value ef those assets In accordance with Intemational Financial Reporting Standards. -30-‘waa Sup) pue pnw 2 vo ‘sygeun st yuowasevew ous ‘uonesepop founyeal our Jo sth! oi 3 ‘10% 49 aren yoo a2u ® pue r15'086'21 a 0 voieraidep panne P Z91'909't Of Jo 265 uo wes = w pean vonesuen sul eze'eTS OF ‘Por aed os Wakctade en Guauainos pul Meade prs SPMD ELL we ign) 10101140 pueog a oy Bupuomne SIeESe 225 0) ny 6 paLe/URA AION WIE SRY BYU Bu YORONpasd puodes a o uIBvojeg ew Es PUY ARLE sio'oce saves esos castvere car ee cites eons sskaa 2 tanutea “eu oe a Ss worsens sBumoyy 24 30 sstsu0> won SL ewamog poe Auedars OTFinancial As “This tem consists ofthe folowing! December 31, 2019 2018. 3” 3 {Quoted Investment ining investment Company 16,195 22,150 16,195 22,150 LUnguoted investment Jordanian Investment and South Development Company 114,299 114,298 Chemical and Mining Industries Company 35,000 35,000 Rashadiya Employees’ Association ‘500 500 349,799 145,799 167,994 171,949 ‘This item represents gooduill amount of 30 2,495,945 relating to the acquisition OF A Alou! Group that took place In 2008. For Impairment testing purposes, ‘Seodvil acquired trough business combination has been allocated tothe ready ‘mix (conerete)epersting and reportable segment (eash-generating Unt) (On December 31, 2018, management performed its gooduil impairment test. ‘The recovereble amount of the ready mix (concrete) cashrgenarating Unit has been determined based on a valve In use calculation using cashflow projections based on the 2018 financial budget approved by management. ‘Cash flow projections beyénd 2019 are estimated using a 39s to 83% growth rate, which management boloves fs reflective of the average growth rate the region. The scour rate aoplied to cash Now projections is 896, which represents the Weighted-average cost of captal for the Group, taking Into consideration the Fiske specie to ‘he ready mix (conerete) segment As a result ofthis analysis, no Impairment oss was resulted in the ready mix (Concrete) seament “The calelation of value In use is most sensitive to the folowing assumptions: Gross margin Discount rates Growth rate used to estimate cash flows beyond the budget period ith regard to the assessment of value In use, management blleves that no reasonably posable change In any of the above Key assumptions would cause the carrying vale of the unit to materially exceed ie recoverable emount. Sie liv cantes fe flow December 31, aos 2018 2 . Employee hosing ns * Miss? 417.28 Employee car ans == an asap 77628 7,628,767 ‘The Company granted its classified employees, who have been In service with the Company for not lass than five Years, interest-free housing loans. at 2 ‘maximum amount of 30. 22,000 per employee. The loans are repayable in monthly instalments, dedicled from the employees’ monthly salaries over 2 period not to emeed 15 years. These loans are guaranteed by a mortgage aver fhe real-estate, 232+‘The Company grantad its classified employees interest-free car loans ranging from 2 Injoimum amount o 30 7,000 to JD 35,000 depending on the employee's grad ‘Ine loans are repayable in monthy installments, deducted from the employees! monthly salaries ever a period nat to exceed 8 years. These loans are guaranteed by amortgage over the financed ca. Housing end car loans are Intily corded at {alrvalue which scalulated by discounting the monthly installments to thelr present Value using an intarest rate of 8.5% and 8.59%, respectively, which approximates the interest rate for similar commercial loans, and subsequently measured at ‘amortized cast using the effective interest rate method. 4, Right of “The Company leases several assets including land and building. The average lease term is 3 years. The movement for right-oFuse assets during the year 2019 is as, follows For the Year Ended December 21, 2019, Beginning balance 5,750,691 ‘Add “Additions durirg the year : ‘Less: Depreciation during the year 3,795,113) Balance as st December 31, 2019 3,955,578 sn 7 For the Year Ended ‘Salement: December 31, 2030 30 Depreciation for the year 1,795,113 Interest forthe year” "298,080 ‘Lease expense during the year 2093193, 2cLease abil “The movement for lease the lilly during the 2019 was as follows: For the Year Ended December 31, 2019 December 31, 2018, iD Beginning balance 5,590,233, ‘Add: “Additions during the year = Interest during the year 298,080 ‘Less: Paid during the year 2,125,914) ‘Balance as at December 31, 2019 762,399 ‘The fllowing is an analysis of the maturity of lease obligations as at December 31, 2019: ‘ease Labllty Maturty Analysis Docomber 31, 2019, 0 Less than one year 41,578,966 From ane to five yeors 2/183.433, “The undiscounted lease labilty amounted to JD 4,745,185 as at December 31, 2019. The maturity analysis i a fellows: ‘undiscounted Lease ality Maturity Analysis December 31, 2019 Less thon one yeor 2,081,241 From one to five years 2'703,544 745,185 -33